Reference: 07-01
KAB Inc Sales Are Collected 80% in the Month of the Sale

question 40

Multiple Choice

Reference: 07-01
KAB Inc., a small retail store, had the following results for May. The budgets for June and July are also given. $$\begin{array} { | l | l | l | l | } \hline & \text { May (actual) } & \text { June (budget) } & \text { July (budget) } \\\hline \text { Sales } & \$ 42,000 & \$ 40,000 & \$ 45,000 \\\hline \text { Cost of sales } & 21,000 & 20,000 & 22,500 \\\hline \text { Gross margin } & 21,000 & 20,000 & 22,500 \\\hline \text { Operating expenses } & 20,000 & 20,000 & 20,000 \\\hline \text { Operating income } & \$ 1,000 & \$ \quad 0 & \$ 2,500 \\\hline\end{array}$$ Sales are collected 80% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the sale. The "operating expenses" are paid in the month of the sale.
-The cash disbursements during the month of June for goods purchased for resale and for operating expenses should be:

• A)$41,000.
• B)$43,500.
• C)$40,000.
• D)$42,500.

Comprehend the concept of observational learning and its factors as defined by Bandura.

Discuss the influence of behaviors and attitudes through media and social learning.

Apply principles of learning to behavior modification techniques.

Understand the role and implementation of technology in enhancing retail experiences.

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Definitions:

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing their behavior and interactions.

Cross-cultural Negotiations

Cross-cultural negotiations involve the process of bargaining or discussing terms between parties from different cultural backgrounds, requiring sensitivity to diverse values and communication styles.

Perceptual Set

A psychological tendency to perceive or notice some aspects of the available sensory data while ignoring others, influenced by expectations, experiences, and context.

Past Experience

Previous events or activities that an individual has encountered, often influencing current behaviors and perceptions.