Reference no: EM131936446
Determine whether each of the following statements are True or False
1. In retailing, your primary market should represent 40% of sales
2. In general, a retail gross margin of 40% is considered.
3. Frequency varies inversely with reach holding the promotional budget constant
4. Retail/ distribution costs in the US are considered the lowest in the world as a percentage of retail selling price
5. Retail store personnel turnover rates are usually below 20%
6. When using a book/perpetual inventory system, a physical inventory is never necessary
7. Advertising which mentions the competition by name is known as competitive advertising
8. The average ticket for credit card purchases is larger than the average ticket for card purchases
9. Retail decisions about fixtures, color, flooring, music, etc. is known as retail layout
10. Most US retailing is single price and full service
11. Objectives, strategies, tactics, programs, and rules are all supported by the mission
12. Inventory carried to meet unanticipated demand is known as basic stock
13. Pricing merchandise at a limited number of price points is known as price penetration
14. Profit margin times asset turnover equals return on equity
15. Any number divided into sales should be considered an activity ratio
16. In 1927 Mazur plan of retail organization included a separate personnel department
17. If my sales in May represent 15% of annual sales, my promotional expenses for May should be 15% of the promotional budget
18. To calculate COGS under a cost based inventory system, one must use a cost complement
19. Service retailing provides a higher gross margin than traditional product retailing
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