NAMA Financial Management & Pricing 2

Question 1

A vending operator calculates that a location generates $1,200/month in sales with a 35% cost of goods. What is the gross profit for this location?

Accepted Answer

$780

Answer

Gross profit = $1,200 × (1 - 0.35) = $1,200 × 0.65 = $780.

Question 2

Which pricing strategy sets prices based on what competitors charge rather than on internal costs?

Accepted Answer

Competitive pricing

Answer

Competitive pricing (market-based pricing) sets prices relative to what competitors charge in the same market.

Question 3

In vending financial management, what does 'shrinkage' refer to?

Accepted Answer

Inventory losses due to theft, spoilage, or accounting errors

Answer

Shrinkage is the loss of inventory value due to theft, spoilage, miscount, or employee error.

Question 4

A vending machine has a DEX reading showing 500 units sold at an average of $1.75. What is the total reported sales figure?

Accepted Answer

$875.00

Answer

Total sales = 500 units × $1.75 = $875.00.

Question 5

Which financial document provides a snapshot of a company's assets, liabilities, and equity at a specific point in time?

Accepted Answer

Balance sheet

Answer

A balance sheet shows a company's financial position (assets, liabilities, equity) at a single date.

(NAMA) National Automatic Merchandising Association Certification Practice Test