Intro to Retailing

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Author:
dv3473
ID:
209495
Filename:
Intro to Retailing
Updated:
2013-03-25 23:41:54
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Retail
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Description:
Intro to Retail
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  1. Merchandising
    Is concerned with the planning and control involved in the buying and selling of goods and services to help the retailer realize its objectives ... is only one of the many retailing activities
  2. Merchandise Budge
    plan of projected sales for an upcoming season, when and how much merchandise is to be purchased, and what markups and reductions will likely occur.
  3. Planned Retail Reductions generally fall into three types?
    Markdowns; Employee discounts; Stock shortages
  4. accounts and/or notes receivable
    Are amounts that customers owe the retailer for goods and services.
  5. accounts payable
    Are amounts owed vendors for goods and services.
  6. balance sheet
    Is a financial statement that identifies and quantifies all the firm's assets and liabilities. It shows the financial condition of a retailer's business at a particular point in time.
  7. cost method
    Is an inventory valuation technique that provides a book valuation of inventory based solely on the retailer's cost of merchandise including freight.
  8. cost of goods sold
    Is the cost of merchandise that has been sold during the period.
  9. current assets
    Are assets that can be easily converted into cash within a relatively short period of time (usually a year or less).
  10. current liabilities
    Are short-term debts that are payable within a year.
  11. gross margin
    Is the difference between net sales and cost of goods sold.
  12. gross sales
    Are the retailer's total sales including sales for cash or for credit.
  13. income statement
    Is a financial statement that provides a summary of the sales and expenses fora given time period, usually a month, quarter, season, or year.
  14. long-term liabilities
    Debts due in a year or longer.
  15. merchandise budget
    plan of projected sales for an upcoming season, when and how much merchandise is to be purchased, and markups and reductions will likely occur.
  16. merchandising
    Is the planning and control of the buying and selling of goods and services to help the retailer realize its objectives
  17. operating expense
    Are those expenses that a retailer incurs in running the business other than the cost of the merchandise
  18. retail inventories
    Comprise merchandise that the retailer has in the store or in storage and is available for sale.
  19. retail method
    Is an inventory valuation technique that values merchandise at current retail prices, which is then converted to cost based on a formula.
  20. returns and allowances
    Are refunds of the purchase price or downward adjustments in selling prices due to customers returning purchases, or adjustments made in the selling price due to customer dissatisfaction with product or service performance.
  21. statement of cash flow
    Lists in detail the sources and types of all cash revenue and cash expenditures for a given time period.
  22. stock-to-sales ratio
    Depicts the amount of stock to have at the beginning of each month to support the forecasted sales for that month.
  23. basic stock method (BSM)
    is a technique for planning dollar inventory investments and allows for a base stock level plus a variable amount of inventory that will increase or decrease at the beginning of each sales period in the same dollar amount as the period's expected sales.
  24. battle of the brands
    Occurs when retailers have their own products competing with the manufacturer's products for shelf space and control over display location.
  25. breadth (or assortment)
    The number of merchandise brands that are found in a merchandise line.
  26. cash discount
    Is a discount offered to the retailer for the prompt payment of bills.
  27. category management (CM)
    Is a process of managing all SKUs within a product category and involves the simultaneous management of price, shelf space, merchandising strategy, promotional efforts, and other elements of the retail mix within the category based on the firm's goals, the changing environment, and consumer behavior.
  28. depth
    Average number of stock-keeping units within each brand of the line.
  29. end-of-month (EOM) dating
    Allows the retailer to take a cash discount and the full payment period to begin on the first day of the following month instead of on the invoice date.
  30. extra dating (Ex)
    Allows the retailer extra or interest- free days before the period of payment begins.
  31. shrinkage
    Represents merchandise that cannot be accounted for due to theft, loss, or damage.
  32. free on board (FOB) destination
    a method of charging for transportation in which the vendor pays for all transportation costs and the buyer takes title on delivery.
  33. free on board (FOB) destination
    Is a method of charging for transportation where the buyer assumes title to the goods at the factory and pays all transportation costs from the vendor's factory.
  34. free on board (FOB) factory
    Is a method of charging for transportation where the buyer assumes title to the goods at the factory and pays all transportation costs from the vendor's factory.
  35. free on board (FOB) shipping point
    a method of charging for transportation in which the vendor pays for transportation to a local shipping point where the buyer assumes title and then pays all further transportation costs.
  36. merchandise management
    The analysis, planning, acquisition, handling, and control of the merchandise investments of a retail operation.
  37. open-to-buy (OTB
    Refers to the dollar amount that a buyer can currently spend on merchandise without exceeding the planned dollar stocks.
  38. stock-to-sales method (SSM)
    Is a technique for planning dollar inventory investments where the amount of inventory planned for the beginning of the month is a ratio (obtained from trade associations or the retailer's historical records) of stock-to-sales.
  39. variety
    Refers to the number of different merchandise lines that the retailer stocks in the store.
  40. weeks' supply method (WSD)
    Is a technique for planning dollar inventory investments that states that the inventory level should be set equal to a predetermined number of weeks' supply, which is directly related to the desired rate of stock turnover.

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