Park test 1

12 units=

1 gross=

12 dozen =

1/2 dozen =

1/3 dozen=

1/4 dozen=

3/4 dozen=

1/6 dozen=

why is generating profit important?

what do merchandisers do to generatr profit?

net sales

what are the three merchandising factors?

Cost of merchandise sold

_____ is expressed as a $ amount and as a % on the profit and loss statement

____ is various costs incurred by the operation of the business: wages and salaries, utilities, advertising, supplies and fixtures, rent, taxes, buyers travel, insurance etc.
divided into direct and indirect expenses

__ is expressed as a $ and as a % of net sales on the profit and loss statement

summarizes the 3 merchandising factors for a specific period of time
+results of interactions between/among these factors
also called operating statement or income statement

the purpose of the ___ is to analyse all contributing factors in relation to previous year and or industry-wide figures
can be dividonal / departmental
include $ and % to net sales

=net sales-coms
=gross margin-oe

__ is the difference between net sales and total cost of merch sold
___ provides $ to cover operating expenses and generate profit

when gross margin exceeds expenses it is considered a ___
when expenses exceed gross margin ____

what are the basic components of the PL statement?

__ is the total of price charges to customers for all merch/services b4 and deductions for customer returns and allwoences (all initial sales)

for the operation of 1 specific departemnt; not affect expenses for others

non departement specific

empansizes importance of exercising controll over direct expenses

__ is squeezed by low GM, lack of ability to increase GM, increased expenses incurred

___ are wages for selling personell are a major expense, used to plan and schudule sales support, measure of sales productivity

__ are precent of net sales paid to the seller of ther merch

___ is an indicator of productivity, should not be used alone

__ is the difference between $ cost and $ retail, basic factor in achieving profit, primary tool used in merchandising: a guide in pricing and guide to provide the desired operating profit

expressed as % to retail price- used as a standard for comparison
it is important to make effective buying and pricing decisions

___ can be used to determine salability or performance for sales of items/groups of merch
retail price to be placed on an item (or group of items) in order to meet established goods
maximum amount that can be spent for goods

used to determine markup on a group of items
a retailer usually has a desired markup%
apply diff markup %s to different items and achieve the markup goal

___ is used when calculating MU% needed on the balance of purchases when planned MU% are known
averaging costs when retail and MU% are known
averaging retail when cost and required MU% are known

__ is the difference b/t billed cost of merch and the original price
original or 1st markup
also referred to as mark on
calculated b4 selling period

__ is a group of 12 items

sewing or trade term for small functional items and trimmings, such as buttons, snaps, zippers, hooks, shoulderpads, and seam tape, used to compleet a garment

12 dozen items or 144 units

a part of a whole, expressed in hundredths, involve 3 major elements base, rate, percent amount

total amount which is 100% ( percentage amount/rate

the % one number is of another number ( oercentage rate amount /base)

fractional amount of the result of multiplying the rate by the base

a single quantity reguarded as a whole in a calculation

method of compensation in which a sales person is paid a % of his or her sales

amount remaining after direct expenses are subtracted from gross margin

expenses that specifically relate to the operation of a selling department and that would be eliminated if that department were eliminated

worker who is employed on a year round basis and who works a full work week, usually 35-40 hrs a week

number od hours worked by a part time employee divided by the number of hours considered to be a full time work week

difference b/t net sales and total cost of merch sold

total sales before customer returns and allwoences have been deducted

expenses that do not relate to specific selling departemnts

sales after deductions have been made for consumer returns and allowances

presentation of figures summarizing income, cost of merch sold, and expenses for a specific period, usually a month, season, or year

gross margin less operating profit

relationship between sales for a period of time and the number of hours employees have worked during that period

relationship b/t sales for a period of time and the number of full time equilivent employees who worked during that period

relationship b/t sales and the number of linear feet of shelf space used by a department, merch catogory or brand

ratio that reflects teh sales volume productivity of a retailer's selling space

relationship of dollar gross sales to the number of transactions

method of alotting space where the space to be allowed to a department or merch catagory is based on sales the product has achieved in the past on a square foot basis

total floor space devoted to selling activities, including aisles, fitting rooms, and stock rooms ajacent to the selling department

processing of one sale

relationship b/t gross wages and net sales for a salesperson, departemntm or store

cost after quantity and or trade discounts are deducted but b4 cash discounts are deducted

diff b/t retail % and markup %

diff b/t total cost price and total retail price of all merch handeled during a specific period

diff b/t total delivered cost and total retail price of all merch handeled during a given period

diff b/t net sales and total cost of merch sold

diff b/t cost price and original retail price of merch

diff b/t net sales and gross cost of merch sold

indicates total amount added to to the cost of the total merch in a department

diff b/t cost price and and retail price of merch

reduce the retail value if a merch assortment