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
