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PGA 3.0 Level 2 Exam Questions And 100% Correct Answers
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PGA 3.0 Level 2 Exam Questions And 100% CorrectAnswers 2024-2025
How does this overall vision and core values help the retail manager? Answer In
practice, the retail operation must have a solid understanding of its constituents and
market so that a solid vision and set of values may be established. 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.
Which of the following best describes the retail manager's use of the facility's core
values and vision? - Answer match its desired customer base
For what should value be added to the retail operation? -Answer When making decisions
about a great golf experience customers may want to consider value and the quality of
that experience. The term value can be defined by delivering an experience that well
exceeds the price paid. The most determining factor in delivering an experience beyond
the customer's perceived value will come from the level of customer service. It is here
that a successful retailer adds value and image to the facility with a "Customer First"
culture that enforces excellence in customer service by the staff while building positive
relationships with the customers.
During which month does the End of Month Inventory target for May equate to the BOMI?
Answer June
What other figures are known if the cost of goods can be calculated? - Answer Equation:
BOMI + New Inventory Purchased - EOMI at cost = COGS in dollars. Other figures
needed are turnover rate and average inventory.
What estimates the dollar amount of inventory that must be on hand at the beginning of
any month to achieve monthly sales objectives? Answer OTB (open-to-buy)
,With a turn-over rate higher than the same period last year, how much inventory do you
need on hand to reach the same sales targets? -Answer "A high turn rate means that
less inventory must be on hand to reach sales target, but inventory must be replaced
more often."
Besides the past year sales volume, what other information shall be needed in order to
arrive at correct forecasting of the sales? - Answer: In order to forecast the sales in
coming years, the past sales volumes need to be analyzed and any trend or pattern that
would seem in this historical data can be obtained. Ideally, graphs and charts can be
developed showing the sale volumes of the past 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 budgeted $310,000 in merchandise sales for the year,
$205,000 for cost of goods sold and a rate of turnover of 2 -Answer $102,500
What is the COGS formula? - 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, where do the sales estimates and the cost of goods estimates
come from? - 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 does COGS tell a retailer about a specific period? - Answer The value of the goods
that were sold and lost or damaged at cost.
Why do golf professionals need to predict the beginning-of-month inventory? ANSWER
To have a count for the available merchandise that is ready to be sold and also not to
overbuy too much merchandise.
, What is the likely consequence of a turnover rate that is too high? -Answer A high turn
means less inventory needs to be on hand to achieve sales goals, but the inventory has
to be replaced more frequently. 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 necessitate more markdowns to clear out stale merchandise. That
creates this cycle of rising COGS and a reduction of gross margin. Thus, the
merchandiser must accurately determine the turn rates for each product line. Keep in
mind it is better to err on the side of a lower turn rate because too high of a turn rate
depletes a shop of an item, whereas too low means the item will have to be marked
down to move it from the shop.
If your average inventory value is $37,000 and your annual cost of goods sold is
$114,000, what is the turn over 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.
What was the turnover rate for the year with the following information below? 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 - Answer The
turnover rate is 2.5
Should OTB funds should be reserved for unforeseen opportunities? - Answer Yes extra
funds can be used for unforseen opportunities.
What's the planned OTB dollars formula? -Answer End of month inventory + Forecasted
COGS - Beginning of month inventory
What does an open-to-buy reserve provide? -Answer It provides the oppurtinty to make
unplanned purchases.
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