FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 16: Financial Merchandise Management

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

True/False

Review LaterAdd Note

Review Later

The basic stock method plans monthly inventory requirements on the basis of a basic stock cushion and that month's estimated sales.

A) True
B) False

Correct Answer

verified

Show Answer

Question 32

True/False

Review LaterAdd Note

Review Later

Stock shortages may be due to bookkeeping errors such as unrecorded markdowns.

A) True
B) False

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

A retailer uses a stock counting-based physical inventory system.Its beginning inventory on January 1,2017 is 600 units; total purchases in January were 252 units.Sales for January were 325 units.A physical count of goods as of February 1,2017 revealed 500 units.Stock shortages for the period equal ________.

A sales cushion is added to planned monthly sales in determining beginning-of-month planned inventory in the ________ method of inventory-level planning.

A retailer's average monthly sales are $130,000.If its monthly sales index for January is 72,January's sales are $72,000.

Which accounting method gives retailers a tax advantage during inflationary times?

A firm's average monthly sales are $250,000.If December's sales are $650,000,December's monthly sales index is ________.

Merchandise categories used by a retailer in forecasting and budgeting are commonly referred to as ________.

Which method of inventory valuation assumes that new stock is sold first while older stock remains in a retailer's inventory?

Unit control decisions relate to ________.

A retail firm has net sales of $2,000,000 for 2017.Its average monthly inventory at hand (at retail) was $350,000.Its annual rate of stock turnover was ________.

A dinnerware retailer plans retail operating expenses to be 42 percent of sales,a net profit margin of 6 percent of sales,and retail reductions to be 4 percent of sales.Its required initial markup needs to equal 50 percent.

An electronics retailer has yearly sales of $1,000,000; its beginning-of-year inventory (at cost) is $400,000 and its ending inventory (at cost) is $410,000.The retailer's annual purchases are $700,000 and transportation charges equal $25,000.The retailer's gross profit equals ________.

In preparing a retail method of accounting worksheet,your accountant has provided you with the following data: January 1,2017 - December 31,2017 At Cost At Retail Beginning inventory $ 60,000 $100,000 Net purchases 350,000 550,000 Additional markups ----- 27,000 Transportation charges 3,500 ----- What is your correct cost complement?

In the retail method of accounting,sales,employee discounts,and stock shortages are viewed as ________.

Holding costs are especially high for ________.

The time span from the date an order is placed by a retailer to the date merchandise is ready for sale is known as the ________.

a.Discuss the differences between the FIFO (first-in-first-out)and LIFO (last-in-first-out)methods of costing inventory. b.Explain how retailers can reduce their profits by switching to LIFO.

Which of the following is not a control unit for a men's specialty clothing chain?

A retailer maintains a book (perpetual) inventory system in which all figures are kept at cost values.Beginning-of-month inventory as of December 1,2016 is $300,000; purchases in December equal $100,000; and December's sales (at cost) equal $155,000.Beginning-of-month inventory for January 1,2010 equals ________.