RCS 346
Terms
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- Why should you create an operating budget?
-
- to allocate expenses
- to know how well you are
doing
- to project sales, margin, &
profit - Operating Profit
-
- Direct profit you get from the operations of the business before adjustments are made
- How well did we sell & control our expenses - Allocated Expenses
- An expense that corporate disperses among different stores.
- 4-5-4 Calendar
-
Allows you to project a comparative analysis for your sales yr. to yr.
- Allows you to plan
- Gives consistency
- Starts on February - Fixed Expenses
- Occupany Costs, Insurance, Professional fees
- Variable Expenses
- Payroll
- Expense Centers
- Broad classifications that will define a particular expense such as loss prevention. Anything having to do with the cleaning of the store, repair or maintenance, direct selling payroll
- Natural Divisions
-
01 - Payroll
06 - Supplies
07 - Equipment/Services Purchased - Productivity
- measurement of total sales related to the hours worked for someone that is in sales.
- Selling Costs
- the cost to sell in direct selling as a percent of sales.
- Employee Turnover
- when employees leave, and you must replace your staff
- Recruiting Techniques
-
- Internal recruitment
- Internet Search Engines
- Career Fairs
- Headhunters
- Cold Calls - FOB Destination
- shipping paid by vendor
- FOB Factory
- buyer responsible for shipping
- Routing Guide
- how you tell the vendor how you want your merchandise shipped
- Routing by weight
-
Common carrier - 18 wheeler
LTL - less than truck load -
Free Zone of New York
7th Avenue - Area of NY for clothing to be shipped
- Ship to a freight consolidator
- ships the same merchandise to several different vendors at one time on one truck shipment
- UPC
- Universal Price Code
- EDI
- Electronic Data Interchange
- JIT
-
Just in Time
- program with vendors for merchandise to come in just in time for an actual sale. - Cross Document
- receiving dock to the shipping dock
- Loss Prevention
- Someone protecting assets of the company
- 3 Ways of Loss Prevention
-
1. Paperwork errors
- miscounted inventory
2. External Theft
- Stolen merchandise
3. Internal
- Discounted merchandise - EAS
- Electronic Article Surveillance - when tags are forgotten to be removed
- Components to look for
-
Sales/Revenue
Margin of sales
- COGS
- Markups
- Markdowns
Expenses
Cost of the investment
- Startup Costs
Net Profit vs. Assets
- ROA = Net Proft/Assets
- ROI = Net Profit/Assets - Gross Margin
- costs incurred by conducting business
- How to protect Retention
-
- Hire right
- Proper orientation
- Solid training program
- Open lines of communication
- Have a right culture