ITPEC IP April 2018 Question 89

Which of the following is an appropriate explanation of POS terminals (or POS cash registers) in a supermarket and other such places?

Explanation

Terminals that collect product code, price and other data at the point of sale — POS stands for Point of Sale.

At checkout, the POS register reads each product's code, usually from its bar code, and records the item, price, quantity, time and store for the sale. Collected centrally, this data drives sales analysis, inventory control and ordering, such as which products to restock and which sell at which hours.

Answer (a)

Why not others:

  • •(b) — POS is not "Purchase Order System"; automatic replenishment may use POS data, but the terminal records sales
  • •(c) — "Probability of Survival" is an invented expansion; POS terminals do not monitor product survival
  • •(d) — "Port of Spain" is also an invented expansion; POS names where the data is captured, not a place of manufacture or a market share

Key rule: POS data is captured item by item at the moment of sale, which is what makes it useful for analysing sales and controlling stock.

Business Industry · AI-written, may contain errors

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