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PGA PGM 3.0 Level 2 Merchandise & Inventory Management Exam
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PGA PGM 3.0 Level 2 Merchandise & Inventory Management Exam ...
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PGA PGM 3.0 Level 2 Merchandise & InventoryManagement Exam 2024-2025
How does the overall vision and core values of the facility help the retail manager?
Cements the mission and core values that support the mission
What would the core values and vision be most helpful to the retail manager?
To guide the development of all other components
What should go up in the retail operation in order to go up in value?
Quality and customer service
True or False
If both the turnover rate and average inventory value are known the cost of goods sold
can be calculated. T/F
True
True or False
The BOMI predicts the dollar value of the inventory you need on hand to reach the same
sales targets. T/F
True
True or False
The higher the turnover rate the more inventory you need on hand to reach the same
sales targets. T/F
False
higher turnover means less on hand inventory
,True or False
Knowing the previous year's sales volume is adequate in forecasting sales. (T/F)
False
True or False
Inventory should arrive one to two months prior to the anticipation of the sales. (T/F)
True
The Golf Professional has estimated the annual merchandise sales will be $310,000, the
cost of goods sold will be $205,000, and the rate of turnover is 2.5. What is the average
inventory level at cost?
$82,000
205,000/2.5
What is the formula for COGS?
COGS/Total Sales
True or False
The BOMI predicts the dollar value of the inventory needed at the beginning of each
month to reach monthly sales goals. (T/F)
True
An open-to-buy plan derives the sales estimates and the cost of goods estimates from
what other business management tool?
Historical Data
The main purpose of an open-to-buy plan is to:
Identifying how much to purchase
, The cost of goods sold provides what type of information for a given period of time?
Sold, stolen, lost, and destroyed merchandise
Why do golf professionals have to project BOMI levels?
Approximate amount of inventory needed on hand to achieve sales objectives
What is likely as a result of a high turn?
More sales,
less mark downs,
new fashion leader,
less cost,
better morale among employees,
better return investment
What is a result of a low turn rate in the golf shop merchandising operation?
Dead stock,
heavy mark downs,
low profits,
high expense
If your average inventory value is 37,000 dollars and your annual cost of goods sold is
114,000 dollars what is the turn over rate?
3.08
114,000/56,000
What merchandising condition is most directly related to a high turn rate?
Less inventory
Based on the following information what was the turnover rate for the year?
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