Fashion Merchandising

Under the perpetual inventory system, the entry to record a sales return would include a debit to

• Accounts receivable
• Sales discount
• Cost of goods sold
• Merchandise inventory

Purchases 350,000Purchase Returns & Allowances 15,000Freight in 25,000Cost of Sales ?Total Goods Available for Sale 510,000Merchandise Inventory, end 285,000

• 225000

It is the largest single expense of the merchandising business. It is the cost of inventory that the entity has sold to customers.

• ending inventory
• total goods available for sale
• purchases and beginning inventory
• cost of goods sold

What type of Retail Store Layout is this?

• Grid Layout

SM malls usually conducts mall wide sale before the end of the year. What pricing philosophy does SM uses?

• clearance prices
• regular on-sale
• Competitive prices

What is the importance of knowing your competitors in the business?

• to make fun with them
• to know their strengths and weaknesses
• to compete with them

Beginning inventory less Net purchases less Ending inventory equals Cost of goods sold.

• TRUE
• FALSE

Why do you need to focus on the needs of your prospect?

• because it is what he needs
• because it is the best problem
• because it is his choice

____ is the difference between the net sales and cost of sales.

• Gross profit

Your company needs to analyze the market for a new product, and you were tasked to interview people to collect new data. What do you call this method?

• primary research
• secondary research
• survey research

When you qualify a prospect, what do you do?

• ask questions to check if he is educated
• ask questions to check if he has the need, money and authority
• ask questions and if he answers correctly he is qualified

The way in which products are displayed in the window historically and also termed as "window dressing".

• Window Dressing
• Visual Merchandising
• Signage and Graphics
• In-store Display

Sales calls are very important, why do you need to plan it before heading to your prospects? (3 points) (2-3 sentences)

When a buyer returns merchandise purchased for cash, the buyer may record the transaction using the following entry

• debit Merchandise Inventory; credit Cash
• debit Cash; credit Merchandise Inventory
• debit Cash; credit Sales Returns and Allowances
• debit Sales Returns and Allowances; credit Cash

This camera has 50 megapixels, EF lens type and 128Gb memory card size, This is an example of _______.

• benefits
• advantage
• features

Budoy is opening a new business and his Mother advised him to have a marketing plan. What is the purpose?

• for the people to know that he has a budget
• to avoid wasting his resources
• to strategically sell his products

A sale on May 21 with terms of 2/10; n/30 is due to be collected by

• May 23
• May 31
• June 20
• June 1

A formal, written document that directs a company’s activities for a specific period of time:

• situational analysis
• executive summary
• statement of benefits
• promotion plan

The primary difference between a periodic and perpetual inventory system is that a

• periodic system determines the inventory on hand only at the end of the accountingperiod
• periodic system keeps a record showing the inventory on hand at all times
• periodic system provides an easy means to determine inventory shrinkage
• periodic system records the cost of the sale on the date the sale is made

Using a perpetual inventory system, the entry to record the return of merchandise purchased on account includes a

• debit to Cost of Goods Sold
• credit to Accounts Payable
• credit to Merchandise Inventory
• credit to Sales

Which of the following accounts has a normal debit balance?

• Accounts Payable
• Sales Returns and Allowances
• Sales
• Interest Revenue

The design of the floor space of the store and the arrangement of the products in the shelves and aisles.

• Retail Store Layout

A physical inventory count is usually taken

• in the middle of the accounting period
• at the end of the accounting period
• at the start of the accounting period
• at the peak of the busy season

Scott is the inventory manager of the Banana Republic apparel retailer for all stores in the Southeast. This information would be found in which component of the promotional plan?

• budget
• objectives
• evaluations
• responsibilities

The inventory system employing accounting records that continuously disclose the amount of inventory is called

• retail
• periodic
• physical
• perpetual

How do you increase the sales of your restaurant business?

• communicate with your employees
• add new menus
• put attention on your advertising

Why is prospecting called the lifeblood of sales? (5points)(2-3 sentences)

Each year New York hosts theatrical presentations of apparel on livemodels to audiences. This represents which type of events

• Textiles
• Forecasters
• Fashion Shows
• Manufacturers

Using a perpetual inventory system, the entry to record the purchase of Php30,000 of merchandise on account would include a

• debit to Sales
• debit to Merchandise Inventory
• credit to Merchandise Inventory
• credit to Sales

A dress boutique wants to sponsor a Prom Dress Giveaway for the local high school. They plan to spend a certain percentage of their yearly sales towards this charitable special event. This information would be found in which component of the promotional plan?

• budget
• evaluations
• objectives
• responsibilities

Victoria’s Secret apparel retailer is known for its theatrical presentation of apparel and accessories on live models. This would be what type of retail special event?

• Fashion show
• Showcase
• trunk show
• Fitting

What is a sales lead?

• an existing customer
• a potential customer
• a loyal customer

Which of the following discounts has no account of its own and requires no special accounting entry?

• cash discount
• trade discount
• sales discount
• purchase discount

As a salesperson, what will be the best motivation method for you? Justify your answer in 2-3 sentences (5 points)

You are selling house and lot, what type of closing technique are you going to use?

• continuous yes
• standing-room only
• assumptive close

The Factors Affecting Store Layout are:

A set-up that includes signage and sometimes other features, including product themselves

• Window Dressing
• Visual Merchandising
• Signage and Graphics
• In-store Display

A customer who spends $2,000.00 or more on a Liz Claiborne suit receives a free Liz Claiborne tote. This is an example of which type of event?

• Demonstration
• Premium
• Sampling
• Trunk show

For every sweater over $50.00 sold, Macy’s department store donates a $1.00 to the Ronald McDonald House, a place for sick children. This is an example of which type of event?

• Charitable celebration
• Premium
• Special sale
• Trunk show

Keeping your word to a client shows what type of quality of a salesperson?

• good communication
• confidence
• integrity

What are the four dimensions of retail atmosphere?

• visual aural olfactory tactile

Promotions centered around certain ideas, occasions, holidays, and celebrations are?

• themes
• entertainment
• premium
• charitable

The decorative style of retails store that conveys to the customer "what the store is all about".

• Retail Store Design

Described as the "silent salesperson".

• Visual Merchandising

How will you answer the objection, "I need to think about it".

• What information do you need in order to change your mind?
• If there was one thing that would get you to say yes on this today, what would it be?
• If its about the price, let me handle it.

A modeling agency that provides models for a fashion show is a/an:

• advertiser.
• consultant.
• promoter.
• researcher.

This is the term used when prospects ask questions indicating he is ready to buy.

• objections
• buying signal
• interested

"With Canon digital cameras, you have the opportunity to apply photographic effects to your images before and/or after taking shots." This is an example of ______.

• benefits
• advantages
• features

You are trying to schedule an appointment to the CEO of a company, his secretary is blocking all calls since the leader is very busy. What kind of participant is the secretary?

• influencer
• gatekeeper
• controller

Promotional technique designed to entice customers to purchase a product by showing how the product may be used is called:

• fashion award
• celebrity appearance
• product demonstration
• premium

___ goods are already shipped by the seller but not yet received by the buyer.

• In transit

In merchandising operations, the Sales account will be recorded if the seller sells

• assets that the company owns
• goods or merchandise only
• goods or merchandise on cash basis
• goods or merchandise with discount

Tekla will be presenting to the cooperative members tomorrow morning. Which type of sales presentation method she needs to use so as the people would understand her message accurately?

• memorized
• persuasive
• needs satisfaction

What is a promotional activity held to build customer traffic, sell goods and enhance the company image?

• sale
• public relations
• grand opening
• special event

Karen is working on a document that will cite all of the sources, reports, and statements she has utilized while doing her research. This information would be found in which component of the promotional plan?

• budget
• executive summary
• schedule of events
• bibliography

Petra is a sales superstar, she is hardworking that is why she was promoted. This aspect shows that selling career is ________.

• job security
• career stepping stone
• challenging

What is a brief overview of the entire marketing plan?

• statement of benefits
• executive summary
• objectives
• responsibility sheet

It is like a test that checks the pulse of your prospect toward the product or service you are offering.

• trial close

Collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or implementation of the marketing plan.

• executive summary
• environmental scanning
• market planning
• performance standards

Shopee and Zalora falls on what type of merchandising?

• fashion
• e-commerce
• grocery

Old Navy created an event using famous YouTubers that created a video featuring their clothing on their teen target audience. This type of special event is called:

• themes
• entertainment
• premium
• charitable

Under the perpetual inventory system, increases and decreases in inventory are recorded through the purchases, freight-in, purchase returns, and purchase discounts accounts

• TRUE
• FALSE

It refers to the way retailers make their merchandising available in stores.

• in-store merchandising
• retailing
• retail merchandising

_____ account is used when merchandise are sold to customers. (account title)

• Sales

Define the acronym MAD in selling.

• money, authority, desire

A local high school is planning a fashion show that encourages participants to design items that have been recycled or re-purposed. The purpose of the show is to highlight environmentally friendly fashions.This is which step of planning a special event?

• Budget
• Date and time
• Target audience
• Theme

"The customer is always right". Explain your answer in 3-5 sentences. (5points)

A written document that details a company’s promotional efforts for a certain period of time is a/an:

• executive summary
• marketing plan
• promotional plan
• SWOT analysis

Sales centers around the present while Marketing centers around the future. Sales makes a pull and Marketing pushes people in.Sales depends on tried and true best practices while Marketing uses varying tools and strategies.Which is TRUE in the above sentences?

• Sales centers around the present while Marketing centers around the future.
• Sales makes a pull and Marketing pushes people in.
• Sales depends on tried and true best practices while Marketing uses varying tools and strategies.

Merchandise inventory, beg 220,000Cost of Sales 270,000Total Goods Available for Sale 750,000Purchase Discounts 20,000Purchase Returns & Allowances 30,000Merchandise Inventory, end ?

• 480000

What is an elevated walkway for models that project out from the stage, usually into the audience seating area.

• stage
• runway
• escalator
• landing strip

Which account is not classified as a selling expense?

• Sales Salaries
• Transportation-Out
• Sales Discounts
• Advertising Expense

You are a medical representative handling the Batangas area, how are you going to manage your time and territory to increase your numbers. (3-5 sentences, 5 points)

Jessica Simpson appeared in the Carolina Place Mall Belk for an autograph session and to sing one song. This is an example of which type of event?

• Celebrity appearance
• Demonstration
• Personal improvement session
• Trunk show

No entry is made to recognize cost of goods sold when inventory is sold under periodic inventory system.

• TRUE
• FALSE

Merchandise Inventory, beg 180,000Purchases ?Goods available for sale 370,000Cost of Sale 220,000Merchandise Inventory, end 150,000Purchase Discounts 10,000

• 200000

Which of the following is not considered in computing net cost of purchases?

• Transportation cost paid on purchased goods
• Transportation cost paid on goods shipped to customers
• Purchase returns and allowances
• Purchases

In this inventory system, the business immediately adjusts the inventory account every time there is purchase and sale transaction.

• Perpetual
• Periodic
• Manufacturing
• Merchandising

Typical fashion show with theatrical elements. Runway with a theme, special location, staging & lighting, models, makeup & hair styling, production & music.

• informal fashion show
• formal runway show

Anthony plans to spend $5,000 on a television commercial and $2,500 on a newspaper ad this holiday season to stimulate store traffic. This information would be found in which component of the promotional plan?

• budget
• evaluations
• objectives
• responsibility

The order that outfits appear in a fashion show is called?

• lineup

Purchase returns and discounts are deducted from gross purchases when computing for net purchases.

• TRUE
• FALSE

___ is the product of deducting the purchases returns and allowances and purchases discounts from the net sales and adding the transportation in.

• Net purchases

Projection of achievable sales revenue , based on historical sales data, analysis of market surveys and trends, and salespersons' estimates. Also, known as a sales budget. It forms the basis of a business plan.

• executive summary
• marketing plan
• sales forecast
• SWOT analysis

Inventory refers to the goods that a merchandising business has purchased with the main intention of reselling them.

• TRUE
• FALSE

What is the best customer service for a water refilling station?

• have an ideal price for your product
• have an added service which people can enjoy
• cleaning and changing your filters on a regular basis

Buy 3, take 1 for Free is a type of what price discount?

• volume discount
• promotional discount
• loyalty discount

A purchase discount results from

• buying a large enough quantity of merchandise to get the discount
• returning goods to the seller
• receiving a purchase allowance from the seller
• paying within the discount

Which is NOT a benefit of excellent customer service?

• advantage to competition
• provides more sales opportunities
• improves communication skills

The section of the promotion plan that analyzes whether or not the objectives of the plan were met:

• evaluations
• executive summary
• objectives
• budget

_____ account that represents the amount of goods or merchandise bought by the business from suppliers. (account title)

• Purchases

It is a process of helping people to make a decision that will benefit them.

• prospecting
• closing
• handling objection

What is the term applied to the excess of net revenue from sales over the cost of merchandise sold?

• gross profit
• income from operations
• net income
• gross sales

It is reduction from the price of the goods for prompt payment of the account.

• Cash discount
• Trade discount
• Returns
• Allowances

A way of measuring an organization's progress and how effective and efficient it is at running its business. The absolute performance standard is a benchmark for quality control.

• marketing plan
• promotion plan
• performance standards
• sales forecast

It is a reduction from the selling price in order to promote sale of the merchandise.

• Cash discount
• Trade discount
• Returns
• Allowances

Petra is a sales superstar, she travels every week and returns to work with numerous sales. This aspect shows that selling career is ________.

• job security
• financial rewards
• flexible

It means responding to the prospect in a way that he changes his mind and somehow relieve his concerns.

• objection handling

Designers or company representatives bring a designer’s collection to a store for a short period of time for customers to view. This is an example of which type of event?

• Charitable celebration
• Demonstration
• Personal improvement session
• Trunk show

Help customers locate specific products and departments, provide specific information, and suggest items/special purchases.

• Window Dressing
• Visual Merchandising
• Signage and Graphics
• In-store Display

Neiman Marcus department store wants to increase monthly store traffic by 11% in their new Charlotte location. This information would be found in which component of the promotional plan?

• budget
• evaluations
• objectives
• responsibilities

The purpose of a special fashion event is:

• to generate store traffic
• to educate consumers AND retail salespeople on the latest trends
• to interact with customers
• to encourage impulse buying
• all of the above

How does a typical salesperson spend his day?

• prospecting, planning, attend meetings
• prospecting, travel, attend parties
• prospecting, travel, attend sales meetings

The marketing intern at a large retailer is given a task list that includes managing all social media and helping with special events. This information would be found in which component of the promotional plan?

• budget
• evaluations
• objectives
• responsibilities

Purchases 350,000Purchase Returns & Allowances 15,000Merchandise Inventory, beg ?Freight in 25,000Total Goods Available for Sale 510,000Merchandise Inventory, end 285,000

• 150000

What is the importance of evaluating a salesperson performance?

• to let others know how poor your numbers are
• to be recognized
• to appraise the past performance

When partial payment was made by the buyer for merchandise purchased on account with terms 2/10; n/30, what will happen when full payment will be made after the discount period?

• Partial discount will be given to the buyer in proportion to the amount paid within the discount period.
• A 2% discount will be given for the whole amount purchased.
• No discount will be given at all.
• A 2% discount will be given as long as it was paid within 30 days upon purchase.

Suggest a trial close question to an employee inquiring for a new cellphone. (5 points)

You are selling advertising services, if you are going to look for prospects, name 2 types of prospecting methods are you going to use and why? (5 points) (2-3 sentences)

Sales return and allowances is classified in the financial statements as:

• an expense account
• a revenue account
• a contra revenue account
• a cost of goods sold account

Elizabeth is trying to determine how much she should spend on food and drinks for her upcoming trunk show. This is which step of planning a special event?

• Budget
• Date and time
• Target audience
• Theme

What are the elements of Interior Design? Click all that apply.

A high-end designer wants to show her new line to the fashion buyers at Saks Fifth Avenue through a casual presentation without using a runway.This would be which type of retail special event?

• Showcase
• Formal runway show
• Informal fashion show
• Trunk show

Taking down notes while the prospect is talking and acknowledging his answers shows what type of quality of a seller?

• good communicators
• good listeners
• problem solvers

Choose which is NOT a buying signal from the prospects.

• nodding his head
• repeating his answer
• asking the payment terms

Revenue is normally entered in the accounting records when:

• goods are received
• goods are sold
• a customer pays for the goods
• a customer orders goods

Ocean Threads hires local models to wear the current line of clothing and to circulate informally during the Top 50 Business Women in North Carolina luncheon. This is an example of a:

• demonstration.
• fashion show.
• special sale.
• trunk show

A large retailer spent a substantial amount of money on television commercials during the holiday season with the goal of increasing sales by 11%. Unfortunately, its sales did not meet the goal during those busy months and management decided not to run the commercials in the future. This information would be found in which component of the promotional plan?

• budget
• evaluations
• objectives
• responsibilities

Sales and marketing have the same functions and require the same skillsets and mindsets.

• yes
• maybe
• no

Built by retail store layout that makes the most significant and last impression.

• Store Image

In Chapter 9 (Retail Design and Layout), the objectives that were being discussed are the following:

Defined as the "psychological feeling a customer feels when visiting a retailer".

• Retail Atmosphere

If a customer returns goods to a merchandiser, what effect will the return have on the books of the merchandiser?

• a increase in sales account
• a decrease in the accounts payable and allowance accounts
• an increase in the purchase return and allowance account
• an increase in the sales returns and allowance account

An element of interior design that includes types offurniture made specifically for stores, including sales counters; presentation cases; racks and shelves; gondolas and tables; as well as mannequins.

• Furniture
• Shelving
• Fixtures
• Fittings

An element of exterior design that acts as a key form of communication with customers and commonly known as the "fascia".

• Marquees
• Windows
• Walkways
• Doortypes

Merchandise inventory, beg 220,000Cost of Sales 270,000Purchases ?Total Goods Available for Sale 750,000Purchase Discounts 20,000Purchase Returns & Allowances 30,000

• 580000

Give 1 significance of retail store design.

• maximises sales

It is a leadership style where managers share the authority and responsibility to his team.

• participating style
• delegating style
• persuading style

The blend of media used to communicate the message of a planned promotion is the:

• merchandising mix
• media mix
• product mix
• advertising mix

A high fashion designer brings his upcoming fall collection to Nordstrom department store for customers to preview. This is an example of which type of event?

• Charitable celebration
• Demonstration
• Personal improvement session
• Trunk show

The type of business that buys and sells goods.

• Manufacturing
• Merchandising
• Finance
• Infrastructure
• Service

In asking budget to your prospect, choose the best question.

• What is your budget?
• How much do you plan to spend in this family vacation?
• Can you afford this travel?

You are offering this to the largest laundry shop in the country. Write a short sales presentation about this ad.(5 points - 5 sentences)

These are goods purchased that remains unsold at the end of the accounting period.

• Supplies
• Inventory
• Stock
• Raw materials

In selling, helping the prospect to find the best solution to his problem is _____.

• science
• art
• both

It is the financial expression of the value of a product.

• place
• price
• promotion

What is the meaning of F.O.B.?

• Free on board

What type of Retail Store Layout is this?

• Freeform Layout