PGA 3.0 LEVEL 2 EXAM 2025
QUESTIONS AND ANSWERS
How does the facility's overall vision and core values help the retail manager? - ANS "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? - ANS match its desired customer base
What should increase in the retail operation to add value? - ANS 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? -
ANS June
The cost of goods sold can be calculated if what other figures are known? - ANS 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
1
Page
and average inventory.
@COPYRIGHT FYNDLAY 2025/2026
, What predicts the dollar value of the inventory needed at the start of each month to reach
monthly sales goals? - ANS 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? - ANS "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? - ANS 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? -
ANS "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 - ANS $102,500
What is the formula for Cost of Goods Sold (COGS)? - ANS 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? - ANS Operating Budget
What is the main purpose of an open-to-buy plan? - ANS The main purpose is to help the
merchiander have the correct level of merchisdise support the clubs sales.
2
What information does the cost of goods sold (COGS) provide for a given period? - ANS The
Page
value of the goods that were sold and lost or damaged at cost.
@COPYRIGHT FYNDLAY 2025/2026
, Why must golf professionals forecast beginning of month inventory (BOMI)? - ANS 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? - ANS 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? - ANS 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? - ANS 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? -
ANS 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 $24,000, Ball sales $ 36,000,
Men's shirt sales $ 54,000, Rounds 20,000 - ANS The turnover rate is 2.5
Should OTB funds should be reserved for unforeseen opportunities? - ANS Yes, the extra
funds can be used for unforseen opportunities.
3
What is the formula for calculating planned OTB dollars? - ANS End of month inventory +
Page
Forecasted COGS - Beginning of month inventory
@COPYRIGHT FYNDLAY 2025/2026
QUESTIONS AND ANSWERS
How does the facility's overall vision and core values help the retail manager? - ANS "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? - ANS match its desired customer base
What should increase in the retail operation to add value? - ANS 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? -
ANS June
The cost of goods sold can be calculated if what other figures are known? - ANS 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
1
Page
and average inventory.
@COPYRIGHT FYNDLAY 2025/2026
, What predicts the dollar value of the inventory needed at the start of each month to reach
monthly sales goals? - ANS 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? - ANS "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? - ANS 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? -
ANS "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 - ANS $102,500
What is the formula for Cost of Goods Sold (COGS)? - ANS 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? - ANS Operating Budget
What is the main purpose of an open-to-buy plan? - ANS The main purpose is to help the
merchiander have the correct level of merchisdise support the clubs sales.
2
What information does the cost of goods sold (COGS) provide for a given period? - ANS The
Page
value of the goods that were sold and lost or damaged at cost.
@COPYRIGHT FYNDLAY 2025/2026
, Why must golf professionals forecast beginning of month inventory (BOMI)? - ANS 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? - ANS 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? - ANS 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? - ANS 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? -
ANS 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 $24,000, Ball sales $ 36,000,
Men's shirt sales $ 54,000, Rounds 20,000 - ANS The turnover rate is 2.5
Should OTB funds should be reserved for unforeseen opportunities? - ANS Yes, the extra
funds can be used for unforseen opportunities.
3
What is the formula for calculating planned OTB dollars? - ANS End of month inventory +
Page
Forecasted COGS - Beginning of month inventory
@COPYRIGHT FYNDLAY 2025/2026
