Under the Model Stock Approach,a Retailer Determines Selling Space Needs

question 92

Multiple Choice

Under the model stock approach,a retailer determines selling space needs by ________.

• A) dividing merchandise into impulse and specific intent categories
• B) computing the amount of floor space necessary to display a given assortment of merchandise
• C) increasing space for complementary goods and decreasing space for substitute goods
• D) determining which products will maximize sales or profit per square foot

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Definitions:

Other Expense

Costs not directly tied to the production of goods or services, such as office supplies or utilities.

Interest Expenses

Costs incurred by an entity for borrowed funds, typically reflected in the income statement.

Selling Expenses

Costs incurred directly from the selling of products or services, such as advertising and sales commissions.

Merchandising Income

The profit generated from buying and selling goods.