Measuring Performance

Respond to the following discussion questions:

  1. How are productivity or efficiency measures used to increase profitability in retail businesses?
  2. How and why is the Cost of Goods the major expense in retail operations?
  3. Why are Expenses calculated as a percentage of Net Sales?
  4. How does Gross Margin Return on Inventory (GMROI) indicate the gross margin as it relates to the investment in inventory?