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28 Cards in this Set

  • Front
  • Back
Why should you create an operating budget?
- to allocate expenses
- to know how well you are
- to project sales, margin, &
Operating Profit
- Direct profit you get from the operations of the business before adjustments are made
- How well did we sell & control our expenses
Allocated Expenses
An expense that corporate disperses among different stores.
4-5-4 Calendar
Allows you to project a comparative analysis for your sales yr. to yr.
- Allows you to plan
- Gives consistency
- Starts on February
Fixed Expenses
Occupany Costs, Insurance, Professional fees
Variable Expenses
Expense Centers
Broad classifications that will define a particular expense such as loss prevention. Anything having to do with the cleaning of the store, repair or maintenance, direct selling payroll
Natural Divisions
01 - Payroll
06 - Supplies
07 - Equipment/Services Purchased
measurement of total sales related to the hours worked for someone that is in sales.
Selling Costs
the cost to sell in direct selling as a percent of sales.
Employee Turnover
when employees leave, and you must replace your staff
Recruiting Techniques
- Internal recruitment
- Internet Search Engines
- Career Fairs
- Headhunters
- Cold Calls
FOB Destination
shipping paid by vendor
FOB Factory
buyer responsible for shipping
Routing Guide
how you tell the vendor how you want your merchandise shipped
Routing by weight
Common carrier - 18 wheeler
LTL - less than truck load
Free Zone of New York

7th Avenue
Area of NY for clothing to be shipped
Ship to a freight consolidator
ships the same merchandise to several different vendors at one time on one truck shipment
Universal Price Code
Electronic Data Interchange
Just in Time
- program with vendors for merchandise to come in just in time for an actual sale.
Cross Document
receiving dock to the shipping dock
Loss Prevention
Someone protecting assets of the company
3 Ways of Loss Prevention
1. Paperwork errors
- miscounted inventory
2. External Theft
- Stolen merchandise
3. Internal
- Discounted merchandise
Electronic Article Surveillance - when tags are forgotten to be removed
Components to look for
Margin of sales
- Markups
- Markdowns
Cost of the investment
- Startup Costs
Net Profit vs. Assets
- ROA = Net Proft/Assets
- ROI = Net Profit/Assets
Gross Margin
costs incurred by conducting business
How to protect Retention
- Hire right
- Proper orientation
- Solid training program
- Open lines of communication
- Have a right culture