1
NRF Retail Industry Fundamentals
Exam 2026/2027 Actual Exam |
Questions & Verified Answers | Pass
Guaranteed
Section 1: Retail Math & Key Metrics
Q1: Gross Margin Return on Investment (GMROI) is calculated as:
A. Net Sales ÷ Average Inventory at Retail
B. Gross Margin $ ÷ Average Inventory at Cost
C. Net Profit ÷ Total Assets
D. Sales per Square Foot × Turnover
**Answer: B
Verified Rationale: GMROI equals gross-margin dollars divided by average inventory
investment at cost to measure profitability on inventory.
Q2: A store’s annual net sales are $1,200,000 and average inventory at retail is $200,000;
inventory turnover is:
A. 2 times
B. 6 times
C. 10 times
D. 0.17 times
**Answer: B
Verified Rationale: Turnover = Net Sales ÷ Avg Inv at Retail = $1,200,000 ÷ $200,000 = 6.
Q3: If gross margin is 45 % and net sales are $800,000, gross-margin dollars equal:
A. $360,000
B. $440,000
C. $800,000
D. $180,000
**Answer: A
Verified Rationale: $800,000 × 0.45 = $360,000 gross-margin dollars.
,2
Q4: Average inventory at cost is $150,000 and GMROI is 2.0; gross-margin dollars generated
are:
A. $75,000
B. $300,000
C. $150,000
D. $2,000
**Answer: B
Verified Rationale: GMROI = Gross Margin $ ÷ Avg Inv at Cost → 2.0 × $150,000 = $300,000.
Q5: Sales per square foot for a 3,000 sq ft store with annual sales of $1,800,000 are:
A. $60
B. $600
C. $6,000
D. $600,000
**Answer: B
Verified Rationale: $1,800,000 ÷ 3,000 sq ft = $600 per square foot.
Q6: Cost of goods sold is $300,000 and gross margin % is 40 %; net sales are approximately:
A. $500,000
B. $420,000
C. $700,000
D. $120,000
**Answer: A
Verified Rationale: COGS = 60 % of sales → $300,000 ÷ 0.60 = $500,000.
Q7: Planned monthly sales are $250,000 and BOM stock-to-sales ratio is 2.0; required
beginning-of-month inventory at retail should be:
A. $125,000
B. $500,000
C. $750,000
D. $250,000
**Answer: B
Verified Rationale: BOM Inv = Sales × BOMS Ratio = $250,000 × 2 = $500,000.
Q8: If inventory turnover increases from 4 to 6 with constant sales, average inventory:
A. Increases 50 %
B. Decreases 33 %
C. Increases 33 %
D. Decreases 50 %
, 3
**Answer: B
Verified Rationale: Avg Inv is inversely proportional to turnover; 4/6 = 0.67 → 33 % reduction.
Q9: Initial markup % is calculated as:
A. (Retail − Cost) ÷ Retail × 100
B. (Retail − Cost) ÷ Cost × 100
C. Cost ÷ Retail × 100
D. Gross Margin ÷ Net Sales × 100
**Answer: A
Verified Rationale: Initial markup % equals the difference between retail and cost divided by
retail.
Q10: A retailer wants a 54 % gross margin; the maintained markup $ goal on $900,000 sales is:
A. $374,000
B. $486,000
C. $540,000
D. $414,000
**Answer: B
Verified Rationale: $900,000 × 0.54 = $486,000 gross-margin dollars.
Section 2: Customer Service & Experience Management
Q11: A customer receiving a damaged online order phones the store; the associate’s first
response should be:
A. Ask the customer to contact the carrier
B. Apologize and offer immediate resolution options
C. Blame the warehouse
D. Transfer to manufacturer
**Answer: B
Verified Rationale: Empathetic apology followed by ownership and options restores trust and
meets service standards.
Q12: Which metric best reflects customer experience loyalty?
A. Inventory turnover
B. Net Promoter Score (NPS)
C. Sell-through %
D. Shrinkage %
**Answer: B
Verified Rationale: NPS gauges likelihood to recommend, correlating with future loyalty and
spend.
NRF Retail Industry Fundamentals
Exam 2026/2027 Actual Exam |
Questions & Verified Answers | Pass
Guaranteed
Section 1: Retail Math & Key Metrics
Q1: Gross Margin Return on Investment (GMROI) is calculated as:
A. Net Sales ÷ Average Inventory at Retail
B. Gross Margin $ ÷ Average Inventory at Cost
C. Net Profit ÷ Total Assets
D. Sales per Square Foot × Turnover
**Answer: B
Verified Rationale: GMROI equals gross-margin dollars divided by average inventory
investment at cost to measure profitability on inventory.
Q2: A store’s annual net sales are $1,200,000 and average inventory at retail is $200,000;
inventory turnover is:
A. 2 times
B. 6 times
C. 10 times
D. 0.17 times
**Answer: B
Verified Rationale: Turnover = Net Sales ÷ Avg Inv at Retail = $1,200,000 ÷ $200,000 = 6.
Q3: If gross margin is 45 % and net sales are $800,000, gross-margin dollars equal:
A. $360,000
B. $440,000
C. $800,000
D. $180,000
**Answer: A
Verified Rationale: $800,000 × 0.45 = $360,000 gross-margin dollars.
,2
Q4: Average inventory at cost is $150,000 and GMROI is 2.0; gross-margin dollars generated
are:
A. $75,000
B. $300,000
C. $150,000
D. $2,000
**Answer: B
Verified Rationale: GMROI = Gross Margin $ ÷ Avg Inv at Cost → 2.0 × $150,000 = $300,000.
Q5: Sales per square foot for a 3,000 sq ft store with annual sales of $1,800,000 are:
A. $60
B. $600
C. $6,000
D. $600,000
**Answer: B
Verified Rationale: $1,800,000 ÷ 3,000 sq ft = $600 per square foot.
Q6: Cost of goods sold is $300,000 and gross margin % is 40 %; net sales are approximately:
A. $500,000
B. $420,000
C. $700,000
D. $120,000
**Answer: A
Verified Rationale: COGS = 60 % of sales → $300,000 ÷ 0.60 = $500,000.
Q7: Planned monthly sales are $250,000 and BOM stock-to-sales ratio is 2.0; required
beginning-of-month inventory at retail should be:
A. $125,000
B. $500,000
C. $750,000
D. $250,000
**Answer: B
Verified Rationale: BOM Inv = Sales × BOMS Ratio = $250,000 × 2 = $500,000.
Q8: If inventory turnover increases from 4 to 6 with constant sales, average inventory:
A. Increases 50 %
B. Decreases 33 %
C. Increases 33 %
D. Decreases 50 %
, 3
**Answer: B
Verified Rationale: Avg Inv is inversely proportional to turnover; 4/6 = 0.67 → 33 % reduction.
Q9: Initial markup % is calculated as:
A. (Retail − Cost) ÷ Retail × 100
B. (Retail − Cost) ÷ Cost × 100
C. Cost ÷ Retail × 100
D. Gross Margin ÷ Net Sales × 100
**Answer: A
Verified Rationale: Initial markup % equals the difference between retail and cost divided by
retail.
Q10: A retailer wants a 54 % gross margin; the maintained markup $ goal on $900,000 sales is:
A. $374,000
B. $486,000
C. $540,000
D. $414,000
**Answer: B
Verified Rationale: $900,000 × 0.54 = $486,000 gross-margin dollars.
Section 2: Customer Service & Experience Management
Q11: A customer receiving a damaged online order phones the store; the associate’s first
response should be:
A. Ask the customer to contact the carrier
B. Apologize and offer immediate resolution options
C. Blame the warehouse
D. Transfer to manufacturer
**Answer: B
Verified Rationale: Empathetic apology followed by ownership and options restores trust and
meets service standards.
Q12: Which metric best reflects customer experience loyalty?
A. Inventory turnover
B. Net Promoter Score (NPS)
C. Sell-through %
D. Shrinkage %
**Answer: B
Verified Rationale: NPS gauges likelihood to recommend, correlating with future loyalty and
spend.
