Question 1 of 20
5.0 Points
An audit is doomed to failure if:
A. top management is not responsive to accepting the need for change.
B. the audit is conducted by company specialists.
C. the purpose of the audit is kept secret from middle managers.
D. the audit must be conducted when the store is closed.
Question 2 of 20
5.0 Points
Average sales per store, sales per square foot of selling space, and inventory turnover are examples of
retail:
A. return on net worth performance ratios.
B. non-key business ratios.
C. inventory management ratios.
D. performance measures.
Question 3 of 20
5.0 Points
Which of the following should be audited when the store is open?
A. Fixture quality
B. Inventory turnover
C. Parking lot adequacy
D. Employee records
Question 4 of 20
5.0 Points
An audit that focuses on a retailer’s pricing strategy illustrates a __________ audit.
A. vertical
B. disguised
C. horizontal
D. nondisguised Question 5 of 20
5.0 Points
Which audit is especially suitable for monitoring sales presentations of retail salespersons?
A. Systematic
B. Horizontal
C. Disguised
D. Nondisguised
Question 6 of 20
5.0 Points
Which audit technique should be used to determine the accuracy of a retail buyer’s sales forecasts?
A. Nondisguised
B. Systematic
C. Disguised
D. Horizontal
Question 7 of 20
5.0 Points
An evaluation of the how well a firm’s buyers understand the computation of maintained markups can
best be ascertained through a __________ audit.
A. mystery shopper
B. disguised
C. horizontal
D. nondisguised
Question 8 of 20
5.0 Points
The potential performance of new goods, services, and/or store outlets can be assessed using:
A. a sales opportunity grid.
B. a market share/market growth grid.
C. estimated markups.
D. a product/market attractiveness grid. Question 9 of 20
5.0 Points
A chain with 100 stores is currently opening between 7 and 10 stores per year. What performance
measure most accurately reflects continuing sales productivity?
A. Total sales
B. Sales increase on a year-to-year basis
C. Compound sales growth
D. Sales per square foot in stores open one year or more
Question 10 of 20
5.0 Points
A vertical retail audit:
A. is one in which a retailer’s employees are not aware that the audit is taking place.
B. involves an analysis of the overall performance of the retailer.
C. is also called a “retail strategy audit”.
D. involves an in-depth analysis of a retailer’s performance in one area of its strategy mix or operations.
Question 11 of 20
5.0 Points
A sales opportunity grid evaluates retail good/service alternatives on the basis of:
A. sales per square feet.
B. display costs.
C. markup.
D. net profit estimates.
Question 12 of 20
5.0 Points
A retail audit should be conducted with what minimum time frequency?
A. Every 5 years
B. Every 3 years
C. Yearly
D. Semiannually Question 13 of 20
5.0 Points
A home improvement chain plans for various contingencies such as higher interest rates reducing home
sales and the effect of electricity disruption due to major storms. This analysis is:
A. scenario analysis.
B. gap analysis.
C. benchmarking.
D. opportunity cost analysis.
Question 14 of 20
5.0 Points
Very large retail organizations are best able to use which type of person to conduct an audit?
A. Company department managers
B. Consultants
C. Outside auditors
D. Company specialists
Question 15 of 20
5.0 Points
A firm’s comparing its performance to competitors based on the components of the strategic profit
model illustrates:
A. SERVQUAL.
B. benchmarking.
C. opportunity cost analysis.
D. gap analysis.
Question 16 of 20
5.0 Points
In a disguised audit,:
A. store employees are unaware that an audit is taking place.
B. the real purpose of the audit is told to employees, but not customers.
C. consumers are aware of the audit.
D. results of the audit are not given to management. Question 17 of 20
5.0 Points
An evaluation of a retailer’s overall strategy is a(n) __________ audit.
A. vertical
B. horizontal
C. disguised
D. nondisguised
Question 18 of 20
5.0 Points
A preliminary study of a retailer’s operations revealed that employees might feel threatened by the retail
audit process. What type of audit should be conducted?
A. Disguised audit
B. Audit by company department managers
C. Audit by outside auditors
D. Nondisguised audit
Question 19 of 20
5.0 Points
What type of auditor is most appropriate for a small, independent retailer?
A. Outside auditor
B. Company department manager
C. Company specialist
D. Company founder
Question 20 of 20
5.0 Points
The first step in undertaking a retail audit is:
A. developing audit form(s).
B. determining when and how often the audit is conducted.
C. determining who does the audit.
D. conducting the audit.
