Budgeting

Question 1

What does budgeting have with the carrier bag process?

Answer 1

Profit and loss needed
Balance sheet needed
Product budgets needed

All this in order to not over or under stock

Question 2

What are KPI budgets

Answer 2

They are key performance indicators target for there budget and selling cost

Question 3

Business budgets that merchandisers create with finance team?

Answer 3

Sales turnover budget - cash value the product will generate. Influenced by the macro environment, product mix, and distribution channels

Markdown spend - a finically cost of discounting the range influenced by promoting and variable costs

Opening and closing stock budget - the optimum amount stock to support sales turnover

Intake margin % budgets -the anticipated margin that the supplier base can deliver

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Question 4

What is really important within a fashion business

Answer 4

Stock budgeting - becomes the life blood of the business

Question 5

The management by the merchandiser of the product budget means?

Answer 5

• open to buy calculations
• benchmark for future analysis
• gross trading profit

Question 6

Planned purchases

Answer 6

The amount purchased during a period of time

Formula - planned sales + planned markdowns +planned ending inventory - planned beginning inventory

Question 7

Planned purchases at cost

Answer 7

The amount of costs

Planned per chases x 100%- initial markup

Question 8

What is the OTB?

Answer 8

The number of £’s available to purchase merchandise that is not accounted for previous per chase orders

Question 9

OTB formula

Answer 9

Planned purchases - merchandise on Oder

Planned sales + markdown + planned EOM stock + planned BOM - stock to order

Question 10

OTB cost

Answer 10

Open to buy x 100-%

Question 11

What is budgeting

Answer 11

A interrogated process that creates flow of budgeting and a range of planning decisions