CPCM Assortment Analysis: Questions With
Detailed Solutions
•Which of the following formulas correctly calculates GMROII?
Correct Answer - Gross margin divided by Average Inventory at
Cost
•The company that makes Soft Touch perfume decides to introduce
new product aimed at the value-priced market: Soft Touch shampoo.
What would this be an example of? Correct Answer - Brand
Extension
•What is activity based costing? Correct Answer - A method to
more accurately determine costs to include direct and indirect
overhead costs
•Space analysis should begin with a total store overview. What is the
purpose of this analysis? Correct Answer - All of the above: to
compete with every other category in the store, to determine the
amount of space each category deserves according to the criteria
used by the retailer, to be certain that your category is getting its fair
share of space
•Widgetmax decides to introduce a new product called Widgetmini,
which is a 12-pack of smaller sized widgets. What is this an example
of? Correct Answer - Product line extension
•Which of the following are costs that are often included in activity
based costing analysis for assortment planning? Correct Answer -
Store size, category space, inventory carrying costs
•A top retailer in the Toledo market introduces a new innovative
item in the widget category, which fills a shopper's need and
Detailed Solutions
•Which of the following formulas correctly calculates GMROII?
Correct Answer - Gross margin divided by Average Inventory at
Cost
•The company that makes Soft Touch perfume decides to introduce
new product aimed at the value-priced market: Soft Touch shampoo.
What would this be an example of? Correct Answer - Brand
Extension
•What is activity based costing? Correct Answer - A method to
more accurately determine costs to include direct and indirect
overhead costs
•Space analysis should begin with a total store overview. What is the
purpose of this analysis? Correct Answer - All of the above: to
compete with every other category in the store, to determine the
amount of space each category deserves according to the criteria
used by the retailer, to be certain that your category is getting its fair
share of space
•Widgetmax decides to introduce a new product called Widgetmini,
which is a 12-pack of smaller sized widgets. What is this an example
of? Correct Answer - Product line extension
•Which of the following are costs that are often included in activity
based costing analysis for assortment planning? Correct Answer -
Store size, category space, inventory carrying costs
•A top retailer in the Toledo market introduces a new innovative
item in the widget category, which fills a shopper's need and
