Question 1

Leon George sold kites at the beach last summer.He invested $2,500 in the venture and made $1,400 net profit (net income) .Calculate his return on investment.

Accepted Answer

A)  15.6 percent
B)  17.9 percent
C)  29.9 percent
D)  47.0 percent
E)  56.0 percentF) C) and E)
G) A) and D) E

Question 2

Which of the following is a sales element of an operating statement?

Accepted Answer

A)  cost of goods sold
B)  inventory
C)  direct labor
D)  returns
E)  selling expensesF) D) and E)
G) A) and C)

Question 3

The total cost of the products sold by a firm during a specified period is referred to as

Accepted Answer

A)  amortization.
B)  cost of goods sold.
C)  gross sales.
D)  net sales.
E)  gross margin.F) B) and E)
G) A) and B)

Question 4

A company's gross sales may be reduced by

Accepted Answer

A)  the size of the contribution margin.
B)  the percentage of markdowns.
C)  depreciation and amortization.
D)  stockturn rate and the markup percentage.
E)  returns or allowances.F) C) and D)
G) B) and D)

Question 5

When Beth purchased diabetic candy from a catalog retailer,she was sent orange- and lemon-flavored candy coated in dark chocolate.When she called to complain to the catalog retailer,she was told to keep the candy that was incorrectly sent to her,and that the company would immediately ship her the correct candy.This incorrectly-sent candy would be listed as a(n) __________ on the operating statement for the catalog retailer.

Accepted Answer

A)  product return
B)  markdown
C)  amortized product
D)  liquidity error
E)  allowanceF) B) and E)
G) B) and D)

Question 6

The three major categories of expenses are:

Accepted Answer

A)  direct,semi-direct,and indirect.
B)  variable,fixed,and semi-variable.
C)  external,internal,and societal.
D)  manufacturing,promotion,and distribution.
E)  selling,administrative,and general.F) B) and D)
G) C) and D)

Question 7

The inventory for Jane Westerlund's picture frame store would include

Accepted Answer

A)  her molding,matting,and glass.
B)  her skill in framing prints.
C)  her equipment,chairs,tables.
D)  her cost of goods sold.
E)  her rent and utility expenses.F) B) and E)
G) A) and E)

Question 8

If Jane Westerlund,owner of a picture frame store,raises the average price of framed picture to $100 and the cost of goods sold is $36,what is the percentage markup on selling price?

Accepted Answer

A)  36 percent
B)  55 percent
C)  64 percent
D)  100 percent
E)  178 percentF) D) and E)
G) A) and B) C

Question 9

__________ is a reduction in a retail price that is necessary if the items will not sell at the full selling price to which they have been marked up.

Accepted Answer

A)  Stockturn rate
B)  Markdown
C)  ROI
D)  Markup
E)  Net marginF) C) and D)
G) A) and E)

Question 10

The __________ summarizes the profitability of a business firm for a specific time period,usually a month,quarter,or year.

Accepted Answer

A)  balance sheet
B)  annual report
C)  income statement.
D)  assets-liabilities statement
E)  data mineF) A) and B)
G) A) and E)

Question 11

__________ is the financial ratio that measures the ability of a firm to move its inventory quickly.

Accepted Answer

A)  Markup
B)  Selling price
C)  Return on investment
D)  Stockturn rate
E)  MarkdownF) None of the above
G) B) and C)

Question 12

When Paulette saw the dress in the store window,she knew two things.She had to own the dress,and she could not afford it at its current price.As she visited the dress in the store,she thought of the dress as her own and believed no one else would buy it.It seems she was right because no one else did buy it and the store had to reduce its price by 30 percent in order to dispose of it.This made it affordable for Paulette,who took advantage of a(n)

Accepted Answer

A)  negative markup.
B)  markup elimination.
C)  markdown.
D)  liquidity reduction.
E)  increase in net margin.F) A) and B)
G) A) and C)

Question 13

The gift shop purchased four sets of Block brand hand-painted stemware expecting to sell all four at the list price of $24.99.Unfortunately,the demand for the stemware was not as high as the owner had anticipated.She was only able to sell one at this price.So,she reduced the price on the other three sets to $16.49 and was able to sell all three sets.Calculate her markdown percentage.

Accepted Answer

A)  0.34 percent
B)  2.78 percent
C)  3.43 percent
D)  27.8 percent
E)  34.2 percentF) None of the above
G) B) and C) E

Question 14

A company's operating statement is also called a(n) :

Accepted Answer

A)  income statement.
B)  balance sheet.
C)  defacto annual report.
D)  assets-liabilities statement.
E)  data mine.F) A) and E)
G) A) and B)

Question 15

All of the following are operating ratios used to set a price for an offering EXCEPT:

Accepted Answer

A)  stockturns.
B)  ROI.
C)  market share.
D)  markdown.
E)  markup.F) A) and B)
G) A) and E)

Question 16

All of the following are cost elements of an operating statement EXCEPT:

Accepted Answer

A)  cost of goods sold.
B)  inventory.
C)  returns and allowances.
D)  direct labor.
E)  selling expenses.F) A) and C)
G) A) and E)

Question 17

A company's operating statement consists of three key elements: sales of the firm's products and services,costs incurred in making and selling these products and services,and

Accepted Answer

A)  stock turn rates for its various products.
B)  profit or loss.
C)  markup on cost.
D)  return on investment.
E)  bundle pricing options.F) A) and B)
G) A) and C)

Question 18

A retailer of children's clothing had net sales of $72,000.But to get those sales,she had to reduce her prices by $2,000.Calculate her markdown.

Accepted Answer

A)  0.35 percent
B)  2.78 percent
C)  3.50 percent
D)  3.70 percent
E)  26.7 percentF) A) and D)
G) C) and D)

Question 19

Leon George sold kites at the beach last summer.He invested $2,500 in kites and ended the season with $100 worth of kite inventory.Calculate his stockturn rate for the summer.

Accepted Answer

A)  1.0
B)  1.5
C)  2.0
D)  3.0
E)  24.0F) C) and D)
G) B) and D)

Question 20

Gross sales minus returns and allowances for a firm are called its

Accepted Answer

A)  inventory shrinkage.
B)  discounted return on investment.
C)  gross sales.
D)  net sales.
E)  gross margin.F) A) and E)
G) A) and D)

Exam 24: Financial Aspects of Marketing

Leon George sold kites at the beach last summer.He invested $2,500 in the venture and made $1,400 net profit (net income) .Calculate his return on investment.

Correct Answer
verified
E

Which of the following is a sales element of an operating statement?

Correct Answer
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The total cost of the products sold by a firm during a specified period is referred to as

Correct Answer
verified

A company's gross sales may be reduced by

Correct Answer
verified

Correct Answer
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The three major categories of expenses are:

Correct Answer
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The inventory for Jane Westerlund's picture frame store would include

Correct Answer
verified

If Jane Westerlund,owner of a picture frame store,raises the average price of framed picture to $100 and the cost of goods sold is $36,what is the percentage markup on selling price?

Correct Answer
verified
C

__________ is a reduction in a retail price that is necessary if the items will not sell at the full selling price to which they have been marked up.

Correct Answer
verified

The __________ summarizes the profitability of a business firm for a specific time period,usually a month,quarter,or year.

Correct Answer
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__________ is the financial ratio that measures the ability of a firm to move its inventory quickly.

Correct Answer
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Correct Answer
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Correct Answer
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E

A company's operating statement is also called a(n) :

Correct Answer
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All of the following are operating ratios used to set a price for an offering EXCEPT:

Correct Answer
verified

All of the following are cost elements of an operating statement EXCEPT:

Correct Answer
verified

A company's operating statement consists of three key elements: sales of the firm's products and services,costs incurred in making and selling these products and services,and

Correct Answer
verified

A retailer of children's clothing had net sales of $72,000.But to get those sales,she had to reduce her prices by $2,000.Calculate her markdown.

Correct Answer
verified

Leon George sold kites at the beach last summer.He invested $2,500 in kites and ended the season with $100 worth of kite inventory.Calculate his stockturn rate for the summer.

Correct Answer
verified

Gross sales minus returns and allowances for a firm are called its

Correct Answer
verified

Exam 24: Financial Aspects of Marketing

Leon George sold kites at the beach last summer.He invested $2,500 in the venture and made $1,400 net profit (net income) .Calculate his return on investment.

Correct AnswerverifiedE

Which of the following is a sales element of an operating statement?

Correct AnswerverifiedShow Answer

The total cost of the products sold by a firm during a specified period is referred to as

Correct AnswerverifiedShow Answer

A company's gross sales may be reduced by

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The three major categories of expenses are:

Correct AnswerverifiedShow Answer

The inventory for Jane Westerlund's picture frame store would include

Correct AnswerverifiedShow Answer

If Jane Westerlund,owner of a picture frame store,raises the average price of framed picture to $100 and the cost of goods sold is $36,what is the percentage markup on selling price?

Correct AnswerverifiedC

__________ is a reduction in a retail price that is necessary if the items will not sell at the full selling price to which they have been marked up.

Correct AnswerverifiedShow Answer

The __________ summarizes the profitability of a business firm for a specific time period,usually a month,quarter,or year.

Correct AnswerverifiedShow Answer

__________ is the financial ratio that measures the ability of a firm to move its inventory quickly.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedE

A company's operating statement is also called a(n) :

Correct AnswerverifiedShow Answer

All of the following are operating ratios used to set a price for an offering EXCEPT:

Correct AnswerverifiedShow Answer

All of the following are cost elements of an operating statement EXCEPT:

Correct AnswerverifiedShow Answer

A company's operating statement consists of three key elements: sales of the firm's products and services,costs incurred in making and selling these products and services,and

Correct AnswerverifiedShow Answer

A retailer of children's clothing had net sales of $72,000.But to get those sales,she had to reduce her prices by $2,000.Calculate her markdown.

Correct AnswerverifiedShow Answer

Leon George sold kites at the beach last summer.He invested $2,500 in kites and ended the season with $100 worth of kite inventory.Calculate his stockturn rate for the summer.

Correct AnswerverifiedShow Answer

Gross sales minus returns and allowances for a firm are called its

Correct AnswerverifiedShow Answer

Correct Answer
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E

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C

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E

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