PGA 3.0 Level 2 Test Questions With Complete Solutions Graded A+

What department is considered the core business unit? golf operation From a functional perspective, a vendor is what kind of resource? financial resource What must exist for a facility to have a positive culture? resources What would a typical organizational chart of a golf operation show? staff roles & the relationships between them What is the most likely determinant of the complexity of a facility's organizational chart? size of facility and number of resources Staff is considered a tangible resource? true What intangible resource is key to enabling and facilitating peak performance? culture How can facilities foster a positive culture? open communication and discussion "Identify staffing needs" is ones of the staff management roles in running a golf operation true High-performance profiling is a tool that can be used to communicate a uniform set of facility-wide expectations for all employees true What should a manager consider when determining the number of employees needed to run an operation? human resources it will take What is the advantage of asking open-ended questions during the interview process? lead to unbiased answers Reduced training needs is one of the anticipated benefits of adopting new point of sale system technology false What is the first step in acquiring a new technology-based system? assess facility needs Why should employees be involved in creating and revising policies or procedures? encourages staff to buy-in to the guidelines it sets out Promotion is one of the four "Ps" of marketing true What does the American Marketing Association refer to as a name, term, sign, symbol or design, or combination of them intended to identify the goods and services of a seller? brand Pace of play policies are an effective means for controlling the demand curve for the use of perishable tee times true What does yield management allow? allows facility to maximize the total number of rounds available each day What term would be considered an important metric for monitoring performance against budget? variance What can yield management predict? demand What is the formula for developing a yield management report for a given period? rounds played/potential rounds x 100 = yield% Why is monitoring performance considered a two-part process? metrics and staff service quality What is the yield percentage if a facility sells 180 of 240 available tee times? 75% Managing by walking around is the most effective when organizational protocols are observed, such as, limiting conversation to their direct reports false One of the main benefits of the interpersonal management approach to monitoring performance is to ensure policies and procedures are being followed true Visit regularly with heads of other departments is an example of managing by waking around as it applies to monitoring operations? true What is the main objective of behavioral management? manage employee behaviors What is the focus of the interpersonal management approach? keeping track of performance and employee behavior Service improvements should be implemented when achievement of anticipated benefits can be measured true When should organizations respond to variances? ASAP, swiftly What employee problem poses the biggest challenge for most managers? following procedures correctly and to facility standards What could be the cause of "overall poor service" issues? poor systems, resources, or policies What is an example of an operational change made in response to variances? changing tee time system When should management implement service improvement? when the desired benefit can be clearly measured The COGS can be calculated if both the turnover rate and the average inventory value are known true The BOMI predicts the dollar value of the inventory needed at the beginning of each month to reach monthly sales goals true The higher the turnover rate, the less inventory you need on hand to reach the same sales targets true Knowing the previous year's sales volume is sufficient to accurately forecast sales true Inventory should arrive one to two months prior to the anticipation of sales true What is the formula for COGS for month? BOMI + new inventory on purchase - EOMI In an open-to-buy plan, the sales estimates and the cost of goods estimates come from what other business management tool? historical data, trends, etc What is the main purpose of an open-to-buy plan? how much of a particular product to buy What information does the COGS provide for a given period of time? value of goods sold, stolen, lost, or destroyed Why must golf professionals forecast BOMI levels? can forecast their inventory levels for the year What is likely the result of high turnover rate? not enough inventory buying OR selling through inventory What is a result of a low turn rate in the golf shop merchandising operation? high quantities, high pricing, poor promotion, stale desplays If your average inventory value is $37,000 and your annual cost of goods sold is $114,000, what is the turnover rate? 3.1 Which merchandising condition is most directly correlated with a high turn rate? low markup or increased sales What is the formula to determine monthly OTB dollars? POTB - merch on order What is the formula to determine planned OTB? EOMI + COGS - BOMI What is the most important consideration when evaluating the type of merchandise to purchase for your shop? customer needs What is necessary for developing a MAP? open-to-buy plan What are the two most important considerations when determining price points? competition and economic conditions Why should core merchandise be the first added to the MAP? serves as foundation What does "anticipation dating" refer to? future date payment agreement - discount for early payment What is one disadvantage of advanced dating? need to carry more inventory What is one advantage of advance dating? sell product at no immediate cost What is the key tool for inventory control? merchandise classification What does "complete date" indicate on a purchase order? last possible date that vendor can have order delivered & accepted by purchaser before the facility can refuse order Physical unit tracking can determine both merchandise on hand and sold true What are two methods of tracking real-time inventory changes during the time between physical inventory counts? perpetual book inventory & POS What inventory management tool serves to ensure adherence to the business plan? POS system Perpetual book inventory can determine both merchandise on hand and merchandise sold true Adopting a perpetual book inventory system replaces the need to conduct physical inventory counts false What is a disadvantage of high turnover? keeping more inventory on hand How often should a physical inventory be conducted? monthly or quarterly What could cause shrinkage? damage, loss, inadequate receiving, insufficient tracking Why is high turnover beneficial? increased sales, fewer markdowns What is the formula for gross margin? final sales - cost of goods sold COGS plus gross margin = Final Retail Price True If an item sells at the targeted markup, markup % and gross margin % will be the same false If the planned markup is 15%, what would be the price of a shirt that costs the shop $30 if the MIll River Plan is used? $34.50 If a shirt costs $30 and the markup % for the shirt is 50%, what would be the potential gross margin return on investment? $15.00 What is the definition of a markup? difference between wholesale and the intended sales price What is the price of a driver when it costs the shop $160 and the markup is 80%? $288 Using a keystone pricing strategy, what is the retail price of a shirt that has a cost of $30? $60 What is the suggested distance for separating floor fixtures? 3 feet What is the value of destination areas? provide services that members needed before they enter - highlights other areas of golf shop Which type of fixture provides the most flexibility when floor space is limited? wall fixtures What is the main value of having annual special promotions? generate interest and excitement What is the definition of a permanent markdown? reductions is list price Which is a reason for a golf shop to have annual promotional events? increase sales, move stale merch, introduce new product What is an example of a value added service? club fitting, grip repair, steaming shirt What is the definition of cost of goods sold? value of cost of goods sold, damaged, stolen, or lost during a period of time Gross margin the difference between total sales and the COGS true If the wholesale price of a sand wedge is $70, the retail is $125, and final sales price is $105, what is the gross margin percentage? 50% What is the most effective way to both value and determine the current amount of inventory in real time? perpetual book inventory A higher inventory turnover rate usually means a higher GMROI true What does gross margin return on investment (GMROI) tell us? how much money made from every dollar invested What does a variance report explain? deviation from an average metric What is the value of analyzing performance variances? put self in position to solve problems early What financial management tools is a possilbe resource for performance numbers used to produce a variance report? plans or budgets What markdown would be required to sell a poorly moving keystone item at cost? 50% Which pair of strategies most likely would reduce shop inventories that have been increasing due to poor sales? bundling, tournament discounts Which staff member is responsible for pace of play? starter What is a disadvantage of letting faster groups play through? further slows down original group a yield management report shows the number of rounds played and the revenue generated by those rounds false Successful yield management would more likely involve target marketing of the broad customer base than of a specific player group true Demand-based pricing can be employed to change the demand curve for the use of perishable tee times true Negative augmented feedback can function as either negative reinforcement or punishment true Instructors should avoid giving positive feedback when using negative feedback as punishment false Feedback functions as negative reinforcement when it strengthens undesirable behavior true