Test 1 Flashcards
(28 cards)
What are the five rights of merchandising?
Merchandise, Place, Time, Qualities, Price
What is centralized merchandising?
Decisions are made at the corporate office. It has become less popular as it reduces expenses and increases profits.
What metrics are used to measure buyer efficiency?
Sales, Inventory, Margin
What is the unit measurement for a pair?
1 pair = 2 units
What is the unit measurement for a dozen?
1 Dozen = 12 units
What is the unit measurement for a gross?
144 units = 12 Dozen = 1 Gross
What is a skeletal profit and loss statement?
Operating profit results from the relationships among Sales volume, cost of merchandise, Expenses, Direct costs, and Customer returns.
What are quality discounts?
Allowed when a large, specified quantity is purchased, encouraging buyers to buy in bulk.
What are trade discounts?
Higher volume of purchase = a higher trade discount, often a series of 2 or 3 discounts as a percentage off.
What is a seasonal discount?
Encourages retailers to take merchandise in the off-season.
What is a cash discount?
% reduction from the quoted cost for a prompt payment, encouraging customers to purchase within a certain timeframe.
What is COD in dating?
Cash on Delivery
What is regular dating?
Calculated from the date of invoice.
What is ROG dating?
Calculated from the date the retailer receives the merchandise.
What is EOM dating?
Calculated from the end of the month of the invoice date.
What is X-Dating?
Extends credits for an additional period.
What is advanced dating?
Receive discount as of month and date.
What are trade allowances?
Compensating for stocking merchandise.
What are buying allowances?
Limited period of time.
What are slotting allowances?
The retailer is given money to stock a new line.
What are markdown guarantees?
The vendor refunds money to the retailer if excessive markdowns are required to sell the merchandise.
What are promotional allowances?
Give promotional money for cooperative advertising.
What is a damage allowance?
Compensation for goods damaged during transportation.
What is FOB Factory?
Buyer takes the title from the factory and pays the transportation charges from the factory.
