Janine Buys Swimwear for Chain Store and While at a Recent

question 32

Multiple Choice

Janine buys swimwear for chain store and while at a recent trade show,she took the opportunity to meet with a few vendors.During one meeting a vendor that she normally purchases from each season,proposed a weekend in the Cayman Islands to view the swimwear that European tourists were wearing.Janine knows that it would be beneficial for trend direction to see what European tourists are wearing and then translate what she is seeing into her assortment for her target customer.Before she could further discuss this offer with the vendor,what should she do?

• A)be certain that all her work is completed before she leaves for an extended weekend
• B)inform her divisional merchandise manager of the proposal
• C)look at her budget to see how much product she would be able to purchase from this vendor this season
• D)see what other vendors might be offering
• E)check to see if there might be a better place than the Cayman Islands to scope out swimwear trends

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Definitions:

Periodic Inventory System

An accounting method where inventory levels and the cost of goods sold are determined at the end of the accounting period.

Average Cost

The total cost of producing goods divided by the number of goods produced, representing the per-unit cost.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, after accounting for sales and new purchases.

LIFO Cost Method

A method of inventory valuation where the last items added to the inventory are considered the first ones sold.