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Fashion Buying > Budgeting > Flashcards

Flashcards in Budgeting Deck (11)
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1
Q

What does budgeting have with the carrier bag process?

A

Profit and loss needed
Balance sheet needed
Product budgets needed

All this in order to not over or under stock

2
Q

What are KPI budgets

A

They are key performance indicators target for there budget and selling cost

3
Q

Business budgets that merchandisers create with finance team?

A

Sales turnover budget - cash value the product will generate. Influenced by the macro environment, product mix, and distribution channels

Markdown spend - a finically cost of discounting the range influenced by promoting and variable costs

Opening and closing stock budget - the optimum amount stock to support sales turnover

Intake margin % budgets -the anticipated margin that the supplier base can deliver

I

4
Q

What is really important within a fashion business

A

Stock budgeting - becomes the life blood of the business

5
Q

The management by the merchandiser of the product budget means?

A
  • open to buy calculations
  • benchmark for future analysis
  • gross trading profit
6
Q

Planned purchases

A

The amount purchased during a period of time

Formula - planned sales + planned markdowns +planned ending inventory - planned beginning inventory

7
Q

Planned purchases at cost

A

The amount of costs

Planned per chases x 100%- initial markup

8
Q

What is the OTB?

A

The number of £’s available to purchase merchandise that is not accounted for previous per chase orders

9
Q

OTB formula

A

Planned purchases - merchandise on Oder

Planned sales + markdown + planned EOM stock + planned BOM - stock to order

10
Q

OTB cost

A

Open to buy x 100-%

11
Q

What is budgeting

A

A interrogated process that creates flow of budgeting and a range of planning decisions