A vendor profitability analysis statement:
A) is a vendor's financial statement that is made available to all retailers.
B) is a schedule maintained by the retailer which shows each vendor's initial data for new lines, shipment of orders, and gross margins.
C) is a retailer's financial statement used by the vendor for determining available credit limits.
D) is a retailer's analysis of the profitability of the different vendors and their lines from the prior year(s).
E) breaks down vendors using an A-B-C classification based on the reliability of delivery from each vendor.

Question

Quizplus · Accepted Answer

A vendor profitability analysis statement is a statement prepared by a retailer to analyze the profitability of different vendors and their lines from the prior year(s). It helps the retailer to evaluate the performance of each vendor, identify strengths and weaknesses in the business relationship, and negotiate better terms for future agreements.

A Vendor Profitability Analysis Statement