PGA 3.0 LEVEL 2 LATEST EXAM QUESTIONS AND CORRECT
ANSWERS 120 EXAM QUESTIONS AND ANSWERS
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.
, 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)
Which merchandising condition is most directly correlated with a high turnover rate?
- ANSWER: Low inventory is most directly correlated with a high turnover rate.
Given the following information, what was the turnover rate for the year? Sales
$196,000, Cost of goods sold $140,000, Average Inventory $ 56,000, Glove sales
ANSWERS 120 EXAM QUESTIONS AND ANSWERS
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.
, 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)
Which merchandising condition is most directly correlated with a high turnover rate?
- ANSWER: Low inventory is most directly correlated with a high turnover rate.
Given the following information, what was the turnover rate for the year? Sales
$196,000, Cost of goods sold $140,000, Average Inventory $ 56,000, Glove sales
