Attempt all the questions.

(A)Short Answer type Questions

1. Define merchandising. Describe the steps involved in the process of merchandising. 

2. What do you mean by operating expenses ? Distinguish between direct and indirect expenses. Give their examples in relation to a departmental retail store. 

3. "Mark-up is an important tool for the retail business." Elaborate on the statement and explain the two methods of mark-up calculation. 

4. What is meant by the inventory at the front level ? Describe the two methods of determining inventory on the retail floor. 

5. Explain the 'open-to-buy' system and state its advantages. Also show how is it calculated? 

6. Explain the concept of product development and state its advantages and disadvantages.  

7. Explain the various factors affecting retail pricing. 

(B) Essay type Questions

8. "The organized retail has miles to go in India." Elaborate on the statement giving suitable examples. 

9. Write short notes on any two of the following :

(a) Pricing in retail

(b) Store development index

(c) SPF as a planning measure

(d) Sales curves