Worksheets2.02 Review
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
When the cost of working capital is high, it is prudent to increase inventory levels.
a)
True
b)
False
2.
Direct selling is promotion aimed at a large general audience.
a)
True
b)
False
3.
When gathering merchandising information, past sales records ____.
a)
show what goods have been given to thrift shops as wanted
b)
indicate changes in consumer preferences and the results of advertising and promotional events
c)
detect swings in inventory levels according to truck delivery schedules
d)
are mainly used to evaluate special events
4.
when a retailer submits definite specifications to a manufacturer rather than looking for goods already produced
a)
buying plan
b)
stock turnover
c)
assortment plan
d)
specification buying
5.
An activity of department store buyers who purchase merchandise for only their own departments.
a)
classification buying
b)
assortment buying
c)
departmental buying
d)
open-to-buy (OTB)
6.
An advantage of buying directly from producers is ___.
a)
the goods are usually of very high quality
b)
prices are lower (with fewer middlepeople)
c)
merchandising support is not offered, which gives retailers more opportunity for creativity
d)
goods can be obtained that use specifications and materials from competing retailers
7.
Turnaround time is ___.
a)
how soon the vendor can deliver after goods are ordered
b)
the average speed of customers selecting and buying items from a retailer
c)
the speed of delivery trucks to bring merchandise to the back of each store
d)
how fast the inventory can be replenished after it is sold
8.
Inventory management activities ___.
a)
involve acquiring and maintaining optimum merchandise assortments
b)
ensure a flow of goods from vendors to retailer to customers
c)
result in stock levels that are consistent with demand
d)
all of the above
9.
An arrangement whereby a retailer takes title to goods when they are received but unsold goods may be returned to the vendor after a specified time is referred to as ___.
a)
consignment buying
b)
memorandum buying
c)
stock-out buying
d)
specification buying
10.
The systematic writing of purchase orders and normal reorders with vendors is known as ___.
a)
specification buying
b)
regular price-line buying
c)
promotion buying
d)
advance buying
11.
Retail buying plans ____.
a)
are written for an unlimited amount of money
b)
include both financial estimates and merchandise item estimates for a specific time period
c)
describe the types and quantities of merchandise that have been purchased over the past several years
d)
make up the indirect selling portion of merchandising activity
12.
If retail buyers order less merchandise than needed, ___.
a)
items may not be available for reorder, which causes lost opportunities for additional sales
b)
sale prices of goods will have to be reduced, which lowers margins and profits
c)
the inventory has to "work harder" with an increased turnover rate
d)
all of the above
13.
A balanced assortment has sufficient items to meet demand and satisfy customers, while maintaining a reasonable low investment in inventory.
a)
True
b)
False
14.
When the cost of working capital is high, it is prudent to increase inventory levels.
a)
True
b)
False
15.
A dollar merchandise plan is also called a 12-month merchandise plan.
a)
True
b)
False
16.
Direct selling is promotion aimed at a large general audience.
a)
True
b)
False
17.
Comparison shoppers check (and report back to their companies) merchandise, prices, ambiance, and services of competing and noncompeting retailers.
a)
True
b)
False
18.
Retailers should ideally be well-stocked while an item is in high demand and try to be low in inventory when demand drops off.
a)
True
b)
False
19.
The smallest unit for which sales and stock records are kept.
a)
open-to-buy (OTB)
b)
stock turnover
c)
buying plan
d)
stock-keeping-unit (SKU)
20.
Items that supplement or accessorize other basic products.
a)
complementary products
b)
dollar merchandise plan
c)
assortment plan
d)
buying plan
21.
External resources of merchandising information include salespeople, consumer opinions, and merchandising bureaus.
a)
True
b)
False
22.
Convenience goods are ___.
a)
necessities that consumer purchase regularly from the most accessible retail outlets
b)
items that retailers order from wholesalers at reduced prices
c)
seasonal goods ordered through sales catalogs
d)
stock items that must be recorded by EPOS equipment for convenient reordering
23.
Selected, discontinued goods, usually of carious sizes and colors, sold at a low price are known as ___.
a)
closeout goods
b)
irregulars
c)
seconds
d)
overruns
24.
Return on investment is ___.
a)
the amount refunded to customers when goods are returned
b)
the money used to purchase goods ordered for a future selling season
c)
the percentage earned from the amount spent
d)
when branch stores send back unsatisfactory merchandise to the main office
25.
The two main methods for developing merchandise assortments are ___.
a)
stock turnover planning and stock-to-sales ratio planning
b)
the basic stock plan and the model stock plan
c)
open-to-buy and stock-keeping-unit
d)
financial planning and control, and assortment planning
100 %
