The gross margin ratio:
A. Should be greater than 1 for merchandising companies.
B. Is a measure of liquidity and should exceed 2.0 to be acceptable.
C. Is also called the profit margin.
D. Indicates the percent of sales revenue remaining after covering the cost of the goods sold.
E. Is also called the net profit ratio.
Answer: D
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________ is the sharing of forecasts and related business information between retailers and vendors to improve supply chain efficiency and product replenishment.
A. Automated replenishment system B. Collaborative planning, forecasting, and replenishment (CPFR) C. Point-of-sale (POS) D. Electronic data interchange (EDI) system E. Universal Product Code (UPC) system
A retailer accepted Visa charge sales totaling $500 and deposited the charge slips in the bank. Assuming a credit card discount expense of 4 percent, what would be the increase to Cash and the increase to Sales, respectively?
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The following is divisional information for Kingfisher Enterprises:
The target rate of return is 12% for the East Division and is 10% for the West Division.
Compute residual income for each division.