Retail Buying Final Exam questions
with 100% correct answers graded A+
2025/2026
Purchase Order - correct answer ✔✔A contract between a store and a vendor to purchase
certain specified merchandise under explicit detailed conditions. When signed by an authorized
store executive, and accepted by the vendor, it becomes a legally binding document.
Receiving Records - correct answer ✔✔Receiving records can provide unit control information
such as the product code, quantity received, unit price, and the date of receipt. This information
helps in reconciling the quantities received with the quantities ordered and in identifying
discrepancies, such as shortages or overages.
Sales Tickets - correct answer ✔✔Sales tickets can provide unit control information such as the
product code, quantity sold, unit price, and the date of the sale. This information helps in
tracking the sales and inventory levels, as well as in identifying the most popular products and
trends.
Merchandise Transfers - correct answer ✔✔Shipments, clothing, and stock, being transferred to
a store location, either from another store or department. In the case of department deliveries
sometimes stock comes to a loading bay and or the wrong location, or a store can sell through a
produced faster than others, in cases it's easier to send pre made products that are not selling
in one location to another
Return to Vendors - correct answer ✔✔"Return-to-vendor" is used for returning merchandise,
and is recorded in a store's invoice covering merchandise returned for cause to its vendor.
Usually for defective merchandise.
,Charge Backs - correct answer ✔✔A chargeback is a return of money to a payer of a transaction,
especially a credit card transaction. Most commonly the payer is a consumer. The chargeback
reverses a money transfer from the consumer's bank account, line of credit, or credit card.
Used when a credit is being given to the store for the cost of merchandise and no goods are
shipped in the transaction
Customer Charge Credits and Cash Refunds - correct answer ✔✔Customer charge credits and
cash refunds can provide unit control information such as the product code, quantity credited or
refunded, reason for the credit or refund, and the date of the transaction. This information
helps in tracking the credits and refunds and the inventory levels, as well as in identifying the
reasons for the credits or refunds.
Order Cancellations - correct answer ✔✔After the Cancellation date stipulated in the purchase
order, the buyer has the right to refuse to accept the order if it has not yet arrived.
Price Change Forms - correct answer ✔✔Markdowns are the most concerning type of retail
price change. (a downward revision in retail price. The markdown reports provide data for
buyers to analyze. A buyer studies the markdown of specific merchandise and the reason for
taking the markdown.) All price changes need to be processed!
Name the seven basic inventory transactions - correct answer ✔✔Purchase Order
Buying on Consignment
Sales Records
Merchandise transfers
Retail price change forms
Merchandise Returns
Purchase Journal
What are the major causes of shortages and overages? - correct answer ✔✔The buyers
responsibilities in regard to shortages and overages fall under ensuring inventory is counted
, properly and accurately, numbers are being double checked before being put into the inventory
system, keeping tabs on theft with floor staff, ensuring systems are updated after store
transfers, having proper housekeeping skills, and checking over all personal work before
submitting information into systems.
Main causes include clerical error, poor housekeeping skills, miscounts, and theft.
Clerical errors can be made by your retail team, when receiving orders there may be a miscount
of the product, and if not caught before being inputted into the inventory system, can cause
shortages and overages.
What is involved in checking a purchase or merchandise journal? Why? - correct answer
✔✔Merchandise Journal: records all the transactions related to receiving of stock, transfers 'ins'
and transfers 'outs', returns to vendor and chargebacks, and price changes within the
department during a given period.
This is important because we can keep track of the sell-through of the merchandise and also for
future buying.
Will describe the date on which the order was placed, the name of the supplier and the invoice
number.
The # of line entries on a purchase log depends on the type of product and the amount of
product that has been received.
What are the major goals of assortment planning? - correct answer ✔✔Strategically planning
and managing inventory and stock.
Adapting to changes in demands of items and sales throughout the year.
Estimate the peaks and valleys in customer demand for the season being planned.
Buy and maintain an inventory of those sizes, colors, and price lines that
accurately reflect the demands of the customer.
Time deliveries so that each individual component of the inventory is available for
sale 'on time' for customer demand.
Detect and respond to any and all signs of change in customer's preferences.
Keep purchases in line with the store's ability to stock, display, promote, and pay
with 100% correct answers graded A+
2025/2026
Purchase Order - correct answer ✔✔A contract between a store and a vendor to purchase
certain specified merchandise under explicit detailed conditions. When signed by an authorized
store executive, and accepted by the vendor, it becomes a legally binding document.
Receiving Records - correct answer ✔✔Receiving records can provide unit control information
such as the product code, quantity received, unit price, and the date of receipt. This information
helps in reconciling the quantities received with the quantities ordered and in identifying
discrepancies, such as shortages or overages.
Sales Tickets - correct answer ✔✔Sales tickets can provide unit control information such as the
product code, quantity sold, unit price, and the date of the sale. This information helps in
tracking the sales and inventory levels, as well as in identifying the most popular products and
trends.
Merchandise Transfers - correct answer ✔✔Shipments, clothing, and stock, being transferred to
a store location, either from another store or department. In the case of department deliveries
sometimes stock comes to a loading bay and or the wrong location, or a store can sell through a
produced faster than others, in cases it's easier to send pre made products that are not selling
in one location to another
Return to Vendors - correct answer ✔✔"Return-to-vendor" is used for returning merchandise,
and is recorded in a store's invoice covering merchandise returned for cause to its vendor.
Usually for defective merchandise.
,Charge Backs - correct answer ✔✔A chargeback is a return of money to a payer of a transaction,
especially a credit card transaction. Most commonly the payer is a consumer. The chargeback
reverses a money transfer from the consumer's bank account, line of credit, or credit card.
Used when a credit is being given to the store for the cost of merchandise and no goods are
shipped in the transaction
Customer Charge Credits and Cash Refunds - correct answer ✔✔Customer charge credits and
cash refunds can provide unit control information such as the product code, quantity credited or
refunded, reason for the credit or refund, and the date of the transaction. This information
helps in tracking the credits and refunds and the inventory levels, as well as in identifying the
reasons for the credits or refunds.
Order Cancellations - correct answer ✔✔After the Cancellation date stipulated in the purchase
order, the buyer has the right to refuse to accept the order if it has not yet arrived.
Price Change Forms - correct answer ✔✔Markdowns are the most concerning type of retail
price change. (a downward revision in retail price. The markdown reports provide data for
buyers to analyze. A buyer studies the markdown of specific merchandise and the reason for
taking the markdown.) All price changes need to be processed!
Name the seven basic inventory transactions - correct answer ✔✔Purchase Order
Buying on Consignment
Sales Records
Merchandise transfers
Retail price change forms
Merchandise Returns
Purchase Journal
What are the major causes of shortages and overages? - correct answer ✔✔The buyers
responsibilities in regard to shortages and overages fall under ensuring inventory is counted
, properly and accurately, numbers are being double checked before being put into the inventory
system, keeping tabs on theft with floor staff, ensuring systems are updated after store
transfers, having proper housekeeping skills, and checking over all personal work before
submitting information into systems.
Main causes include clerical error, poor housekeeping skills, miscounts, and theft.
Clerical errors can be made by your retail team, when receiving orders there may be a miscount
of the product, and if not caught before being inputted into the inventory system, can cause
shortages and overages.
What is involved in checking a purchase or merchandise journal? Why? - correct answer
✔✔Merchandise Journal: records all the transactions related to receiving of stock, transfers 'ins'
and transfers 'outs', returns to vendor and chargebacks, and price changes within the
department during a given period.
This is important because we can keep track of the sell-through of the merchandise and also for
future buying.
Will describe the date on which the order was placed, the name of the supplier and the invoice
number.
The # of line entries on a purchase log depends on the type of product and the amount of
product that has been received.
What are the major goals of assortment planning? - correct answer ✔✔Strategically planning
and managing inventory and stock.
Adapting to changes in demands of items and sales throughout the year.
Estimate the peaks and valleys in customer demand for the season being planned.
Buy and maintain an inventory of those sizes, colors, and price lines that
accurately reflect the demands of the customer.
Time deliveries so that each individual component of the inventory is available for
sale 'on time' for customer demand.
Detect and respond to any and all signs of change in customer's preferences.
Keep purchases in line with the store's ability to stock, display, promote, and pay
