PGA 3.0 Level 2 questions with correct answers 100% 2024

PGA 3.0 Level 2 questions with correct answers 100% 2024 How does the facility's overall vision and core values help the retail manager? - Correct Answer "In practice, the retail operation must have a clear understanding of its constituents and market in order to establish a solid vision and set of values. The overall facility profile can help solidify the retail operation's vision and establish core values that support the vision. Once completed, the vision and core values guide the creation of all other aspects of the retail operation business plan." For which purpose are the facility's core values and vision going to be most useful to the retail manager? - Correct Answer match its desired customer base What should increase in the retail operation to add value? - Correct Answer When making decisions regarding an exceptional golf experience, customers may look at factors such as value and the quality of the experience. Value is defined as providing an experience that exceeds the price paid. The most determining factor in creating an experience that exceeds customers' value is the level of customer service. The successful retailer enhances the facility's image and value with a "Customer First" culture that demands excellent customer service from the staff while building positive relationships with customers. For what month is the End of Month Inventory target for May the same as the BOMI? - Correct Answer June The cost of goods sold can be calculated if what other figures are known? - Correct Answer Equation: Beginning of Month Inventory (BOMI) + New Inventory Purchased - End of Month Inventory (EOMI) at Cost = Cost of Goods Sold (COGS) in dollars. Other figures needed are turnover rate and average inventory. What predicts the dollar value of the inventory needed at the start of each month to reach monthly sales goals? - Correct Answer OTB (open-to-buy) How much inventory do you need on hand to reach the same sales targets if the turnover rate is higher than the same period last year? - Correct Answer "A high turn rate means that less inventory must be on hand to reach sales target, but inventory must be replaced more often." In addition to the previous year's sales volume, what additional information is needed to accurately forecast sales? - Correct Answer When forecasting future sales, it is necessary to analyze the previous sales volumes and determine trends or patterns found in this historical data. It may be ideal to develop charts and graphs to demonstrate the sales volumes from previous years. How far in advance should Inventory arrive prior to the anticipation of sales? - Correct Answer "Inventory levels should be built up one or two months prior to strong forcasted sales, not in the month where the strong sales are expected." The Golf Professional has projected $310,000 in annual merchandise sales, $205,000 for cost of goods sold, and a turnover rate of 2 - Correct Answer $102,500 What is the formula for Cost of Goods Sold (COGS)? - Correct Answer Beginning of the month inv. Cost + New Inv. Purchased - End of Month Inv. At cost - Cost of goods sold in dollars. In an open-to-buy plan, the sales estimates and the cost of goods estimates come from what other business management tool? - Correct Answer Operating Budget What is the main purpose of an open-to-buy plan? - Correct Answer The main purpose is to help the merchiander have the correct level of merchisdise support the clubs sales. What information does the cost of goods sold (COGS) provide for a given period? - Correct Answer The value of the goods that were sold and lost or damaged at cost. Why must golf professionals forecast beginning of month inventory (BOMI)? - Correct Answer To have a count for the availble merchanidise that ready to be sold and to avoid over buying and having too much merchanidise. What is the likely result of a turnover rate that is too high? - Correct Answer A high turn rate means that less inventory must be on hand to reach sales targets, but the inventory must be replaced more often. One turn consists of using cash to purchase a product, selling that product, and reinvesting the cash to replace the sold product. What is a result of a low turn rate in the golf shop merchandising operation? - Correct Answer A low turn rate may require more markdowns to clear out stale merchandise. This cycle causes rising COGS and a reduction of gross margin.Therefore, it is necessary for the merchandiser to accurately determine the turn rates for each product line. Keep in mind that having a turn rate that is too high may cause the shop to run out of a product, but one that is too low means markdowns may be needed to move product out of the shop If your average inventory value is $37,000 and your annual cost of goods sold is $114,000, what is the turnover rate? - Correct Answer The turnover rate was at 3.081= COGS ($114,000)/ AI ( $37,000) Which merchandising condition is most directly correlated with a high turnover rate? - Correct Answer Low inventory is most directly correlated with a high turnover rate.