Determine whether each of the following statements are True or False

1. In retailing, your primary market should represent 40% of sales

2. In general, a retail gross margin of 40% is considered.

3. Frequency varies inversely with reach holding the promotional budget constant

4. Retail/ distribution costs in the US are considered the lowest in the world as a percentage of retail selling price

5. Retail store personnel turnover rates are usually below 20%

6. When using a book/perpetual inventory system, a physical inventory is never necessary

7. Advertising which mentions the competition by name is known as competitive advertising

8. The average ticket for credit card purchases is larger than the average ticket for card purchases

9. Retail decisions about fixtures, color, flooring, music, etc. is known as retail layout

10. Most US retailing is single price and full service

11. Objectives, strategies, tactics, programs, and rules are all supported by the mission

12. Inventory carried to meet unanticipated demand is known as basic stock

13. Pricing merchandise at a limited number of price points is known as price penetration

14. Profit margin times asset turnover equals return on equity

15. Any number divided into sales should be considered an activity ratio

16. In 1927 Mazur plan of retail organization included a separate personnel department

17. If my sales in May represent 15% of annual sales, my promotional expenses for May should be 15% of the promotional budget

18. To calculate COGS under a cost based inventory system, one must use a cost complement

19. Service retailing provides a higher gross margin than traditional product retailing