PGA 3.0 LEVEL 2 TEST QUESTIONS WITH COMPLETE VERIFIED SOLUTION!!|GRADE A+
How does the facility's overall vision and core values help the retail manager? - (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? - (ANSWER)match its desired customer base
What should increase in the retail operation to add value? - (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? -
(ANSWER)June
The cost of goods sold can be calculated if what other figures are known? -
(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? - (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? - (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? - (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.
, PGA 3.0 LEVEL 2 TEST QUESTIONS WITH COMPLETE VERIFIED SOLUTION!!|GRADE A+
How far in advance should Inventory arrive prior to the anticipation of sales? -
(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 - (ANSWER)$102,500
What is the formula for Cost of Goods Sold (COGS)? - (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? - (ANSWER)Operating Budget
What is the main purpose of an open-to-buy plan? - (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? -
(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)? - (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? - (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? - (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? - (ANSWER)The turnover rate was at 3.081= COGS ($114,000)/ AI (
$37,000)
How does the facility's overall vision and core values help the retail manager? - (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? - (ANSWER)match its desired customer base
What should increase in the retail operation to add value? - (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? -
(ANSWER)June
The cost of goods sold can be calculated if what other figures are known? -
(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? - (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? - (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? - (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.
, PGA 3.0 LEVEL 2 TEST QUESTIONS WITH COMPLETE VERIFIED SOLUTION!!|GRADE A+
How far in advance should Inventory arrive prior to the anticipation of sales? -
(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 - (ANSWER)$102,500
What is the formula for Cost of Goods Sold (COGS)? - (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? - (ANSWER)Operating Budget
What is the main purpose of an open-to-buy plan? - (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? -
(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)? - (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? - (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? - (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? - (ANSWER)The turnover rate was at 3.081= COGS ($114,000)/ AI (
$37,000)
