Quiz 6

Accounts receivable and merchandise inventory are examples of retailer's _____ assets that can be converted into cash within one year

Current

Because retailers differ in size and make different decisions regarding their taxes and capital structures to best analyze the performance of one retailer to another retailer, it would be best to compare each retailer's _____.

Operating profit percent

Sales revenue, gross margin, and net profit margin are all examples of retailers' _____ measures.

Output

A food retailer buys 80% of his stock from local producers and employs people from the same region. In doing so, he fulfills the _____ objectives.

Societal

The best benchmark for the off-price retailer Ross, would be

T J Maxx.

Store managers focus on what type of performance input

Utility expenses

The _ is used to obtain information to analyze a retailer's profit margin management path

income statement

the operating profit margin is also called ___

earnings before interest, taxes, and depreciation (EBITDA)

Operating expenses would include all of the following except

shipping expenses from the vendor to the retailer

A decrease in same-store sales indicates

that the retailer's business approach is not being well received by its customers

Last year, a retailer had net sales that totaled $180,000. The cost of goods sold was $70,000. Operating expenses were rent for $4000, payroll $20,000, utilities of $2,000, and advertising of $1200. Calculate the operating profit percentage

46%

The _____ is primarily used to obtain information to analyze a retailer's asset management path.

Balance sheet

________ is a measurement of how much profit the retailer Is making on just the merchandise sold

Gross margin

Which of the following is true of the setting objectives in a large retail organization

In the top-down approach, the overall performance objectives are formed as an aggregation of individual performance objectives

the resources or money allocated by a retailer to achieve outputs, or results. Example: the amount and selection of merchandise inventory, the number of stores, size of stores, the employees, advertising, markdowns, and store hours

Input

when evaluating the performance of a retailer, what is the best financial performance measurement to utilize

Net margin

in terms of the asset management plan, what would happen if Nordstrom were to decrease the dollar amount of inventory in its stores

There will be a negative impact on operating profit margin percentage

An illustrator finds it rewarding to convert stories into picture books and makes it come alive for the children buying his books. In doing so, he fulfills his _____ objectives.

Personal

Buildings, display fixtures, delivery trucks, cash registers, and computers are examples of retailer's _____ assets.

fixed

Net profit margin is

operating profit margin minus taxes and interest