The most appropriate financial performance standard for a department store retail buyer is ________.
A) customer satisfaction
B) total unit sales
C) total dollar gross profit in a department
D) total dollar sales

Question

Quizplus · Accepted Answer

The most appropriate financial performance standard for a department store retail buyer is the total dollar gross profit in a department. This measures the profitability of the products selected by the buyer, taking into account both the total dollar sales and the cost of goods sold. Customer satisfaction and total unit sales are important factors, but they do not accurately reflect the financial performance of the buyer's decisions. Total dollar sales can be misleading as it does not account for the cost of inventory or possible markdowns.

The Most Appropriate Financial Performance Standard for a Department Store