PGM Business Planning Questions with
Verified Correct Answers
A performance metric
any quantifiable measure that can be used to gauge a business's success in meeting its goals
and objectives, different for each facility
metrics included in every forecast
total golf operations revenue, revenue per round, have a direct bearing on the fiscal health of
the business
link forecasting categories with
business objectives established earlier in the planning process, allows the pro to see how
implementation of the objective and core strategies can alter financial performance
measuring rounds
number of rounds and fee charged per round determines a large part of the income at a public
facility
yield
the ratio of rounds actually played to the number of rounds available in a period
calculating yield
number of rounds played x 100/ potential rounds in a period = % yield for the period
yield management
actively targeting and marketing the different tee-time slots and price points to different types
of customers in order to maximize the number of rounds "sold"
, revenue
refers to all sources of income generated at a facility or busiensses
cost of goods sold
major merchandising line item and is always included in financial forecasts and budgets; reps
the value at cost of all merchandise that is sold to customers, stolen, lost, damaged, or
destroyed during a particular period
calculating the cost of goods sold
(beginning inventory + newly purchased inventory) - end inventory = cost of goods sold (for
a given period)
gross margin
the difference between merchandise revenue and the cost of goods sold in the same period;
this difference is the amount of money available to cover operating expenses and make a
profit
calculating gross margin
total merchandise sales - cost of goods sold = gross margin
expenses
every expense for facility operations other than the cost of goods sold
two different divisions of expenses
1) fixed (salaried labor) and variable expenses (hourly labor)
2) operating (day-to-day) and non-operating expenses (depreciation, interest expenses on
debts and loans and taxes)
Verified Correct Answers
A performance metric
any quantifiable measure that can be used to gauge a business's success in meeting its goals
and objectives, different for each facility
metrics included in every forecast
total golf operations revenue, revenue per round, have a direct bearing on the fiscal health of
the business
link forecasting categories with
business objectives established earlier in the planning process, allows the pro to see how
implementation of the objective and core strategies can alter financial performance
measuring rounds
number of rounds and fee charged per round determines a large part of the income at a public
facility
yield
the ratio of rounds actually played to the number of rounds available in a period
calculating yield
number of rounds played x 100/ potential rounds in a period = % yield for the period
yield management
actively targeting and marketing the different tee-time slots and price points to different types
of customers in order to maximize the number of rounds "sold"
, revenue
refers to all sources of income generated at a facility or busiensses
cost of goods sold
major merchandising line item and is always included in financial forecasts and budgets; reps
the value at cost of all merchandise that is sold to customers, stolen, lost, damaged, or
destroyed during a particular period
calculating the cost of goods sold
(beginning inventory + newly purchased inventory) - end inventory = cost of goods sold (for
a given period)
gross margin
the difference between merchandise revenue and the cost of goods sold in the same period;
this difference is the amount of money available to cover operating expenses and make a
profit
calculating gross margin
total merchandise sales - cost of goods sold = gross margin
expenses
every expense for facility operations other than the cost of goods sold
two different divisions of expenses
1) fixed (salaried labor) and variable expenses (hourly labor)
2) operating (day-to-day) and non-operating expenses (depreciation, interest expenses on
debts and loans and taxes)
