A Retail Manager Is Preparing a Budget for the Coming

question 31

Multiple Choice

A retail manager is preparing a budget for the coming year and is considering the various costs of the retail store. What is the best approach for the manager to take when budgeting for the cost of the store's merchandise?

• A) The total costs will stay the same as last year, but the unit cost will change with each sale.
• B) The total cost of merchandise for the year and the unit cost will remain constant with each sale.
• C) The total cost of merchandise for the year will depend on the amount of sales, but the unit cost of each sale will stay fairly constant.
• D) The total costs will stay the same as last year, and the unit cost will remain constant with each sale.

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Definitions:

Reliable Test

A test that consistently produces the same results over time when given in the same conditions.

Validity

The extent to which a test or instrument measures what it is supposed to measure.

Internal Consistency

The degree to which items in a psychological test measure the same construct, indicating the reliability of the test.

Achievement Motivation

The driving force behind striving to succeed or meet standards of excellence.