Question 1

_____ of a merchandise category is the number of different merchandising subcategories offered.

Accepted Answer

A)   Merchandise depth
B)   Classification
C)   Variety
D)   Assortment
E)   Merchandise mixtureF) B) and C)
G) A) and C)

Question 2

Which of the following is an example of staple merchandise?

Accepted Answer

A)   The latest style of denim jeans
B)   Luggage
C)   Flannel sheets
D)   Platform shoes
E)   Men's black socksF) None of the above
G) C) and D)

Question 3

Retail chains typically classify each of their stores on the basis of annual sales.According to this classification,_____.

Accepted Answer

A)   A stores would have the largest sales volume
B)   C stores would receive the highest inventory
C)   B items represent 65 percent of SKUs in a category
D)   C items contribute to 20 percent of sales
E)   B items require the highest amount of backup stockF) B) and E)
G) A) and C)

Question 4

What are the decisions influencing the allocation of merchandise to stores?

Accepted Answer

Allocating merchandise to stores involve...

Question 5

Which of the following factors is considered by retailers in making merchandise allocation and promotion decisions specific to difficult economic times?

Accepted Answer

A)   Shrinkage
B)   Paycheck cycle
C)   Buffer stock
D)   Backup stock
E)   Fill rateF) C) and E)
G) B) and D)

Question 6

A(n) _____ is the smallest unit available for inventory control.

Accepted Answer

A)   category
B)   stock-keeping unit
C)   classification
D)   merchandise group
E)   assortmentF) A) and B)
G) All of the above

Question 7

In terms of merchandise,what is the difference between a classification and a category?

Accepted Answer

A classification is a group of items tar...

Question 8

Which of the following is NOT true of fashion merchandise categories?

Accepted Answer

A)   Forecasting the sales for fashion merchandise categories is more challenging than forecasting for staple goods.
B)   Buyers for fashion merchandise categories have a high degree of flexibility in correcting forecasting errors.
C)   They have a short life cycle.
D)   Buyers often do not have a chance to reorder additional merchandise after an initial order is placed.
E)   New products are continuously being introduced.F) A) and B)
G) All of the above

Question 9

The _____ is the number of each SKU in the assortment plan that the buyer wants to have available for purchase in each store.

Accepted Answer

A)   merchandise budget plan
B)   order point
C)   assortment plan
D)   model stock plan
E)   stock-to-sales ratioF) A) and B)
G) A) and C)

Question 10

Explain briefly the ABC analysis method for analyzing merchandise management performance.

Accepted Answer

An ABC analysis identifies the performan...

Question 11

Which of the following products is an example of a classification?

Accepted Answer

A)   Sweaters
B)   Infant apparel
C)   Polo shirts
D)   Shoes
E)   Formal shirtsF) All of the above
G) A) and E)

Question 12

What is the drawback of utilizing category captains?

Accepted Answer

A)   The vendor category captain could take advantage of their position and maximize their own sales.
B)   Retailers tend to ignore recommendations of the category captain.
C)   Retailers take advantage of the information and misuse it.
D)   Retailers can take advantage of their position and minimize competing brands.
E)   Vendor category captains are not in a good position when compared to retailers to manage a category.F) B) and C)
G) A) and E)

Question 13

An in-depth interview is an unstructured personal interview in which the interviewer uses extensive probing to get individual respondents to talk in detail about a subject.

Accepted Answer

A) True 
 B)False

Question 14

_____ categories consist of items whose sales fluctuate dramatically depending on the time of year.

Accepted Answer

A)   Expected merchandise
B)   Sample merchandise
C)   Staple merchandise
D)   Seasonal merchandise
E)   General merchandiseF) C) and D)
G) A) and D)

Question 15

Which of the following is NOT true of category management?

Accepted Answer

A)   Managing merchandise within a category by brand can lead to inefficiencies because it fails to consider the interdependencies between SKUs in the category.
B)   The category management approach to managing breakfast cereals in supermarkets should have one buyer or category manager who oversees all merchandising activities for the entire category.
C)   A category manager ensures that the store's assortment includes the "best" combination of sizes and vendors.
D)   A category manager chooses vendors that will get the most profit from the allocated space.
E)   A category manager is also called a category captain and works with vendors to get the most profit from collaborative relationships.F) C) and D)
G) A) and C)

Question 16

Father Christmas is a retail store in Georgia that sells a unique Santa made from fur,wool,and tapestry.The store does not sell any other product.Therefore,the store has no _____.

Accepted Answer

A)   category
B)   assortment
C)   medley
D)   merchandise mixtures
E)   varietyF) A) and C)
G) C) and E)

Question 17

Buyers,divisional merchandise managers,and general merchandise managers are some of those who undertake the responsibilities of merchandise management.

Accepted Answer

A) True 
 B)False

Question 18

How can having a high backup stock adversely affect a retailer?

Accepted Answer

By having a high backup stock,...

Question 19

A performance measure which assesses a buyer's contribution to ROA is called the _____.

Accepted Answer

A)   cost plus pricing
B)   gross margin
C)   gross margin return on investment
D)   net profit
E)   break-even pointF) C) and E)
G) A) and C)

Question 20

When there is a high inventory turnover,there is an increase in sales because:

Accepted Answer

A)   price points are set higher to accommodate for potential sales loss.
B)   new merchandise is continually available to customers.
C)   the merchandise begins to look shopworn.
D)   sales are increased by reducing prices.
E)   more money is available to buy new merchandise.F) C) and D)
G) B) and C)

Exam 12: Managing the Merchandise Planning Process

An in-depth interview is an unstructured personal interview in which the interviewer uses extensive probing to get individual respondents to talk in detail about a subject.

Correct AnswerverifiedShow Answer

The _____ is the number of each SKU in the assortment plan that the buyer wants to have available for purchase in each store.

Correct AnswerverifiedShow Answer

How can having a high backup stock adversely affect a retailer?

Correct AnswerverifiedBy having a high backup stock,...View AnswerShow Answer

_____ categories consist of items whose sales fluctuate dramatically depending on the time of year.

Correct AnswerverifiedShow Answer

When there is a high inventory turnover,there is an increase in sales because:

Correct AnswerverifiedShow Answer

In terms of merchandise,what is the difference between a classification and a category?

Correct AnswerverifiedA classification is a group of items tar...View AnswerShow Answer

Explain briefly the ABC analysis method for analyzing merchandise management performance.

Correct AnswerverifiedAn ABC analysis identifies the performan...View AnswerShow Answer

A performance measure which assesses a buyer's contribution to ROA is called the _____.

Correct AnswerverifiedShow Answer

Which of the following products is an example of a classification?

Correct AnswerverifiedShow Answer

Retail chains typically classify each of their stores on the basis of annual sales.According to this classification,_____.

Correct AnswerverifiedShow Answer

Which of the following is NOT true of category management?

Correct AnswerverifiedShow Answer

Buyers,divisional merchandise managers,and general merchandise managers are some of those who undertake the responsibilities of merchandise management.

Correct AnswerverifiedShow Answer

What is the drawback of utilizing category captains?

Correct AnswerverifiedShow Answer

Which of the following is an example of staple merchandise?

Correct AnswerverifiedShow Answer

Father Christmas is a retail store in Georgia that sells a unique Santa made from fur,wool,and tapestry.The store does not sell any other product.Therefore,the store has no _____.

Correct AnswerverifiedShow Answer

Which of the following factors is considered by retailers in making merchandise allocation and promotion decisions specific to difficult economic times?

Correct AnswerverifiedShow Answer

Which of the following is NOT true of fashion merchandise categories?

Correct AnswerverifiedShow Answer

_____ of a merchandise category is the number of different merchandising subcategories offered.

Correct AnswerverifiedShow Answer

A(n) _____ is the smallest unit available for inventory control.

Correct AnswerverifiedShow Answer

What are the decisions influencing the allocation of merchandise to stores?

Correct AnswerverifiedAllocating merchandise to stores involve...View AnswerShow Answer

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By having a high backup stock,...
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A classification is a group of items tar...
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An ABC analysis identifies the performan...
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Correct Answer
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Allocating merchandise to stores involve...
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