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The difference between gross profit and total costs equals the _____.
a. cost of goods sold
b. net profit after taxes
c. cost of goods available for sales
d. net profit before taxes
Partial, revolving payments are not permitted in _____.
a. revolving credit accounts with a maximum credit limit
b. monthly payment credit accounts
c. open credit accounts
d. option credit accounts
As a result of constrained decision making in franchising, _____.
a. oversaturation of outlets can occur
b. royalties are based on sales, not profits
c. the franchisor can limit franchisee input into planning
d. the franchisor uses short-duration leases
In order for quick response (QR) inventory planning to be effective, _____.
a. inventory ordering costs need to be low
b. inventory holding costs need to be low
c. electronic data interchange must not be functioning
d. shipping costs must be reduced
The difference between the retail book value of ending inventory as compared to the
actual physical ending inventory value is _____.
a. an overage (only)
b. a shortage (only)
c. either a shortage or an overage
d. the cost complement
The overall process whereby one member of a channel can impose its will on other
independent channel members is referred to as _____.
a. channel control
b. vertical integration
c. franchising
d. private branding
Which of the following is not always an example of nonstore retailing?
a. direct selling
b. direct marketing
c. airport retailing
d. vending machines
A retailer maintains a book (perpetual) inventory system in which all figures are kept at
cost values. The beginning-of-month inventory as of December 1 is $100,000; the
purchases in December equal $80,000; and December's sales (at cost) equal $63,000.
The beginning of month inventory for January 1 then equals _____.
a. $70,000
b. $117,000
c. $170,000
d. $233,000
A magazine with a circulation of 2,500,000 and a per-page advertising rate of $30,000
has a cost per thousand of _____.
a. $7.14
b. $12.00
c. $71.40
d. $120.00
The major distinction between the canned sales presentation and the need-satisfaction
approach relates to _____.
a. the total time spent with a prospect
b. total training costs
c. whether the sales presentation is changed to reflect a prospect's needs
d. whether order-taker or order-getter personnel are used
