BUISENESS MANAGEMENT
MERCHANDISING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When a retail store is estimating how much they will need in the store to ensure they have enough for customers.
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Planned sales
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Planned stocked reductions
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Planned stock
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Planned retail purchases
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Explanation:
Detailed explanation-1: -The Retail Inventory Method is an accounting procedure used to estimate the value of a store’s inventory over time. It works by first taking the total retail value of all the products you have in your inventory, then subtracting the total amount of sales, then multiply that amount by the cost-to-retail ratio.
Detailed explanation-2: -Here’s Warren’s suggested calculation: Take an average of your top three days’ sales volume over the previous month/quarter/year. Subtract the average daily sales volume for the same period.
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