CHS Business Management 2

Question 1

A salon owner wants to evaluate staff performance. Which metric best measures a stylist's contribution to salon revenue?

Accepted Answer

Service revenue generated per hour

Answer

Service revenue per hour measures how effectively a stylist converts their time into income for the salon.

Question 2

What does 'booth rental' mean in a salon business context?

Accepted Answer

Renting a styling chair or station from the salon owner as an independent contractor

Answer

Booth rental is an arrangement where a stylist pays the salon owner a flat fee or percentage for use of a station while operating as an independent contractor.

Question 3

Which strategy is most effective for reducing no-show appointment rates?

Accepted Answer

Sending automated appointment reminders via text or email

Answer

Automated reminders prompt clients to confirm or cancel in advance, significantly reducing no-shows.

Question 4

A salon's 'cost of goods sold' (COGS) primarily refers to what?

Accepted Answer

The direct cost of products and materials used to deliver services

Answer

COGS in a salon represents the cost of hair color, chemicals, and retail products directly consumed in providing services.

Question 5

When setting retail product prices, what does the term 'keystone markup' mean?

Accepted Answer

Marking up the wholesale price by 100% to set the retail price

Answer

Keystone markup doubles the wholesale cost, so a product bought for $10 sells for $20, providing a 50% gross margin.

(CHS) Certified Hair Stylist Practice Test

(CHS) Certified Hair Stylist Practice Test

CHS Business Management 2