DECA: Retail Merchandising Management Test
A hardware store's customer purchased an air filter at $2.50, a battery at $42.95, and a sander at $52.00. If a 15% discount is given and the tax rate is 5%, what is the total bill? A: $78.69 B: $82.83 C: $86.97 D: $97.45
c
A store has purchased sewing machines at $1.45 each. Operating expenses are @25 each, and the store wants a profit of $45 on each sale. What should be the minimum selling price of each sewing machine? A: $170 B: $190 C: $215 D: $250
c
An economic system which allows its citizens to go into business for themselves, produce goods, and services of their own choosing, and market their products as they desire is called A: socialism B: communism C: Private Enterprise D: sole proprietorship
c
An organization of professional salespeople which requires its members to pledge to compete fairly and honorably is an example of which of the following benefits of organization membership: A: Group services B: Sales promotion events C: Establishment of standards D Expanded business contacts
c
Calculate the total amount to be charged to the customer's account in the following charge-sale transaction: Selling of merchandise: $175.00 Sales Tax Rate: 4% A: $172.00 B: $175.00 C: $182.00 D: $192.00
c
Consumers' ability and willingness to purchase and their desire to own products are necessary to the creation of. A: supply B: utility C: demand D: inventory
c
Determine a product's equilibrium price by examining the following table: Price: Utilities Produced: Units Demanded: $11.00 12,000 18,000 $11.50 14,000 16,000 $12.00 15,000 15,000 $12.50 17,000 13,000 A: $11.00 B: $11.50 C: $12.00 D: $12.50
c
Illustrations used in a garden store's print ads are examples of illustrations that focus on the A: product features B: cost of the product C: product itself D: benefits of the product
c
In order to be prepared for the possibility of a fire, all store managers should understand emergency procedures and know how to: A: gather in the building B: save valuable machinery C: use safety equipment D: contact the news media
c
Persons who perform the mental and physical activities required to manufacture and distribute goods and services are referred to as A: Capital goods B: Natural Resources C: Human Resources D: Physical Resources
c
The two main divisions of the trade industry are A: producers and retailers B: manufacturers and wholesalers C: wholesalers and retailers D: wholesalers and producers
c
Time management usually helps increase your: A: workload B: stress level C: self-esteem D: sense of frustration
c
What is a key marketing function that makes products available to customers? A: Promotion B: Communication C: Distribution D: Inventory Control
c
What level of management would a cashier in a hardware store be most likely to interact with on a daily basis? A: top level B: middle level C: first level D: executive level
c
When a hospital uses its resources to provide medical care, the facility is engaged in the business activity of: A: marketing B: controlling C: production D: distribution
c
Which of the following affects the amount that a store budgets for advertising: A: location of vendors B: the type of store ownership C: age of the store D: The Federal Trade Commission
c
Which of the following is a major goal of visual merchandising: A: defining the target market B: using the latest display techniques C: establishing store image D: saving money for the store
c
Which of the following kinds of paid promotion is most likely to be used to promote the entire store: A: Publicity B: sales promotion C: advertising D: personal selling
c
Which of the following services would be distributed by a producer to agent to consumer channel: A: health care B: vehicle repair C: travel planning D: income tax preparation
c
Which of the following would be a correct salutation in a business letter when you do not know the name of whom you are writing the letter? A: Dear Sir: B: Dear Madam: C: Dear Accounting Manager: D Dear Accounting Department:
c
A new store employee arrived late for work because the manager had not made it clear that the staff were expected to come in an hour before the store opened to the public. How could the manager have prevented this problem? A: Disciplining the new employee B: Designing operating procedures C: Developing policies for the business D: Using better communication techniques
d
A source of product information found on certain products is a testing organization's seal, which indicates the products: A; contents B: size or capacity C: price D: quality and safety
d
All workers should be interested in preventing inflation since it reduces their A: gross wages B: wants and needs C: productivity D: disposable income
d
Factors in the employee's work life that affect employee morale include the employee's: A: health B: family circumstances C: leisure activities D: interpersonal relationships
d
How do technological changes affect a business's recruitment? A: By reducing competition for qualified workers B: By increasing the price of new business equipment C: By making job descriptions essential to recruitment D: By causing businesses to need workers with new skills
d
How is a store affected if its sales forecast is too high? A: The store may not order enough goods B: The store's profits may be increased C: The store won't need to take markdowns D: The store may have to increase its promotions
d
In orer for a store to build a strong clientele, the store should: A: offer free delivery service B: plan an intensive, weekly, advertising campaign C: offer a wide range of product lines D: determine why customers patronize the store
d
Job enlargement, job rotation, and job enrichment are all ways that a company can ______________ of labor specialization. A: transfer the risk B: define the categories C: handle the productivity D: combat the disadvantages
d
One of the reasons that stores offer credit to customers is that it helps them to A: obtain loans B: charge interest C: compare prices D: be competitive
d
One of the ways creativity is useful in marketing occupations is in solving __________________ problems. A: policy B: financial C: mathematical D: human relations
d
Purchasing can minimize a store's investment in inventory by: A: using a central merchandise plan B: setting high standards for product quality C: buying directly from manufacturers D: buying just the quantities that are needed
d
Subdividing the total market for products into smaller groups who have similar needs, wants, and characteristics is referred to as A: mass marketing B: selective distributing C: competition D: market segmentation
d
Supervisors should try to schedule enough employees to work each day during the prime hours in order to: A: increase staff size B: create store image C: increase labor costs D: meet the store's needs
d
The calculation of GDP includes government purchases at which of the following levels: A: Only federal B: Federal and State: C: State and local D: Federal, state, and local
d
The manager of a chain store who needs to design a display would probably begin by A: requesting ideas from employees B: drawing a sketch of the proposed display C: making a mockup of the display D: obtaining a display kit from the home office
d
The purpose of placing a special order is to: A: return damaged merchandise B: exchange unsatisfactory merchandise C: obtain an extra discount D: fill a customer's request
d
What economic activity examines how money payments are divided between resource owners and producers? A: Production B: Consumption C: Exchange D: Distribution
d
What effect does the quality of the products a store sells have on the store's image? A: It determines store image B: It is not related to store image C: It creates a permanent image for the store D: It helps to create a particular image for the store
d
What kind of conversion process is being used in an assembly line that produces soft drinks? A: batch B: labor intensive C: unit D: capital-intensive
d
What might salespeople lose if they fail to accomplish their goals during the approach? A: invitation to company events B: chance to meet top management C: offer to tour the business D: opportunity to make a sale
d
What type of activity are most salespeople competing when they regularly rearrange products in a neat and orderly manner on the shelves? A: Selling B: Inventory C: Maintenance D: Housekeeping
d
Which of the following actions is least likely to help you achieve a goal: A: developing a plan of things to do B: setting a time limit for achieving the goal C: keeping a written record of your progress D: asking your friends if the goal was worthwhile
d
Which of the following is a disadvantage to a store of using cooperative advertising funds? A: The store is not always reimbursed B: Other stores may also receive funds C: The media charge more to present co-op ads D: the manufacturer may control the ad content
d
Which of the following probably is the most important piece of information that a cash flow statement provides: A: cost of maintenance B: beginning of tax year C: statistics from industry D: amount of money expected
d
Why would a movie-rental business also decide to sell candy and popcorn? A: The products require extra promotional effort B: The products fit the business's display racks C: The products are expensive to package and seal D: The products are consistent with the business's product mix
d
A projection of income from sales and the expenses of running the store for a specific future period of time is called a(n) A: operating budget B: cash flow statement C: sales forecast D: income statement
a
A requirement for using a facsimile (fax) machine to transmit written information is a A: telephone line B: special type paper C: microcomputer D: chart showing charges per use
a
A store receives a discount of 20% and 15% on an invoice totaling $200. What is the total amount of the discount? A: $64 B: $70 C: $130 D: $136
a
Employee publications are used to communicate A: company information to workers B: company information to customers C: salary information to employees D: financial information to stockholders
a
Government tries to promote free competition for businesses by enforcing laws that ban: A: Monopolies B: Advertising C: Price Controls D: Safety Standards
a
In which instructional method is a person identified to succeed his/her superior and learn job-knowledge skills from that person? A: Understudy B: Role-Playing C: Junior Board D: Management games
a
In which of the following occupations would employees be organized into craft/trade unions: A: Plumber B: Restaurant worker C: Salesperson D: Hotel Employee
a
In which type of economic system does the government impose high taxes to pay for a wide variety of human-services programs? A: Socialist command B: Communist command C: Traditional D: Cooperative
a
Marketing strategies are designed and implemented for the overall purpose of A: achieving planned goals B: improving management techniques C: changing the image of the business D: increasing business profits immediately
a
One method of evaluating the effectiveness of a display is determining if the display resulted in increased A: Sales B: Costs C: Work D: Set-up time
a
One of the steps in opening a store for the day is to A: turn on the lights B: set the alarm system C: lock the doors D: answer the telephones
a
One way that a store can predict market demand for its products from internal sources of information is by using the ________________________ method. A: sales-force composite B: survey of buyer intentions C: test market D: industry report
a
Part of organizing an inventory count often involves. A: preparing inventory sheets B: preparing income tax forms C: determining when new shipments will arrive D: determining the age of the products on hand
a
Return in marketing management refers to A: making a profit B: "bouncing back" after a failure C: eliminating the possibility of loss D: reducing the risk of a financial loss
a
Some stores that have markdown sales prefer to have employees change prices by writing the sale price of items on the A: original ticket B: Inventory record C: Packing slip D: Purchase order
a
The main part of a long, complex written report is known as the A: body B: cover: C: notes D: abstract
a
Visual control of inventory often involves the use of __________ to rotate stock. A: Color Coding B: Reorder control C: Tickler Control D: Check-out scanner
a
What is a retailer's planned gross margin for next month if planned net sales are $42,000, planned reductions are $1,500, and cost of goods sold is $23,250? A: $17,750 B: $19,250 C: $21,500 D: 24,750
a
What kind of competition do monopolies create? A: none B: direct C: price D: nonprice
a
What kind of correction needs to be made on the following advertising proof: "If you're shopping for a new PC, two numbers need to know." A: Insert text B: Add punctuation C: Change tense D: Correct spelling
a
When the United States sells its products to the government of a country in Europe, the United States is engaged in: A: exporting B: importing C: illegal trade D: domestic trade
a
Which of the following illustrations would most likely be effective in a store's print ad: A: action picture of the store's product in use B: still photograph of the store's product in color C: line drawing that gives an impression of the product D: sketch which focuses attention on the product's producer
a
Which of the following is a category of selling policies employees are expected to follow: A: service B: operating C: inventory D: positioning
a
Which of the following is an example of a fixed operating expense that would be included in a profit-and-loss statement: A: rent B: shipping C: packing D: commissions
a
Which of the following is an example of preventive maintenance in a store: A: inspecting the furnace B: sweeping up broken glass C: repairing damaged roof shingles D: replacing a delivery van's tire
a
Which of the following is classified as an operating expense: A: Costs of utilities B: Costs of preparing items for sale C: Cost of goods sold D: Cost of raw materials
a
Which of the following should a store's employee enter on a calculator to separate dollars from cents: A: decimal B: division sign C: money code D: percent key
a
Which of the following would be considered a floor responsibility for a retail buyer: A: selling merchandise to customers B: determining prices for merchandise C: attending industry trade shows D: negotiating contracts with vendors
a
Workers who participate in teams and feel they are making a contribution to the business usually have ___________ than other workers A: higher morale B: greater skills C: fewer problems D: less conflicts
a
A product that has utility is one that is. A: intangible B: useful to customers C: transferable D: available on credit
b
A store had a gross profit for the year of $245,000, and its expenses for the year totaled $121,000. What is the net profit the store made for the year? A: $121,000 B: $124,000 C: $245,000 D: $363,000
b
A store that purchases from many suppliers can prevent having delivery vehicles wait in line to unload their shipments by A: reducing the number of suppliers B: establishing regular delivery schedules C: hiring only the fastest workers D: unloading important shipments first
b
A store with a new product usually cannot expect customers to know about the product until the store has used promotion to A: prepare news releases B: communicate information C: circulate coupons D: develop advertising
b
A way of ensuring that older merchandise will get the customers' attention first is to use the ______________ stock-rotation method. A: LIFO B: FIFO C: Cost Code D: Basic Stock
b
Credit extended by one business or company to another is referred to as _____________________ credit A: corporate B: commercial C: mortgage D: business
b
Determine whether the following statement is true or false: Purple used in a display is intended to create an image of strength: A: True, purple also represents excitement B: False, red represents power and strength C: True, purple is intended to create an image of strength D: False, red and purple must be combined to create this effect
b
Goods that are used in the operation of a store are called ___________ goods. A: scarce B: Industrial C: Consumer D: Specialty
b
If the seller pays all transportation costs and retains ownership of all goods until they arrive at the store, the shipping terms are FOB. A: factory B: destination C: shipping point D: Destination, charges reversed
b
In order to create display signs quickly, many small retail stores keep on hand a wide variety of A: glass fixtures B: ready-made letters C: decorative props D: plastic mannequins
b
In selling, an objection from the customer is considered a(n): A: cause for argument B: point of difference C: refusal to purchase D: indicator of the salesperson's mistake
b
In wording questions, salespersons should avoid the use of: A: nonverbal signals the customer may misinterpret B: technical jargon that the customer may not understand. C: questioning statements which don't really sound like questions D: simple wording that will make the salesperson appear uninformed
b
Part of management's role in customer relations should be to A: focus on the needs of the business B: train employees in customer service C: provide laissez-faire leadership D: limit the number of job satisfiers
b
Some stores sell products that become unfashionable or outmoded if they are not sold promptly. This creates a business risk called A: competition B: obsolescence C: exchange D: insurance
b
Sugar-Frosted Flakes cereal is promoted during Saturday morning television spots and in after-school television cartoons. This example demonstrates media selection based on A: competition B: target audience C: low cost D: promotional budget
b
The upper torso of a mannequin is held to the leg and hip section with a A: padlock B: lock ring C: thumb screw D: support rod
b
What is the total of the following bank deposit: currency, $16.00; coins, $5.47; and checks, $6.14, $8.29, and $12.56? A: $42.99 B: $48.46 C: $49.64 D: $53.46
b
When producers are hopeful about the economic business outlook, they A: decrease their purchase of new goods B: increase their investment in capital goods C: decrease their inventory levels D: increase their investment in savings
b
Which of the following advertising media offers the easiest means to evaluate the effectiveness of an advertisement: A: newspaper B: direct mail C: radio D: television
b
Which of the following characteristics is descriptive of a meaningful company objective: A: Vague B: Measurable C: General D: Unlimited
b
Which of the following is an important factor for most retail buyers to consider in choosing vendors: A: Vendor's credit rating B: Reliability of delivery C: Short dating terms D: Availability of samples
b
Which of the following is an important use of computers in retail marketing: A: Choosing business image B: monitoring inventory levels C: oversee quality control D: handling production system
b
Which type of business ownership would help a small store by taxing its owners as individuals? A: open corporation B: subchapter "S" corporation C: franchise D: general partnership
b
Why should employees handle store equipment properly? A: to maintain order B: to prevent damage C: to stop vandalism D: to organize space
b
You have the only luxury car dealership in an exclusive residential community. Your prices will be set _____________ the other car dealerships in your immediate area. A: lower than B: higher than C: the same as D: without a thought to
b
