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Management 2 > Exam 1 > Flashcards

Exam 1 Flashcards

1
Q

Purchasing, pricing, display, and sale of merchandise

A

Merchandising

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2
Q

Merchandise includes but is not limited to

A 
Caskets and burial containers
OBCs
Cremation and alternative containers 
Urns and cremation oriented products
Monuments, memorials, cemetery merchandise
Burial Clothing
Personalization options
Sundry items
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3
Q

What is the order of the PRD?

A

Spouse/Domestic Partner
Adult Children
Parents
Adult Siblings

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4
Q

Personalization is an _________ not just products

A

Attitude

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5
Q

_________________ enhances the experience

A

Products and Merchandise

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6
Q

Name some personalization options

A

Casket
Environment in funeral home
Music
Hobbies of deceased

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7
Q

Any funeral in which your normal regular pricing quotation is applied

A

Adult Formula Service

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8
Q

The total package of service from first call to post funeral counseling

A

Adult Formula Service

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9
Q

NMS

A

National Mortuary Shipping

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10
Q

Any service where your normal pricing quotation is NOT used, in effect only a partial service sale

A

Adult Non-Formula Service

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11
Q

What are some examples of Adult Non-formula service?

A 
Ship in
Ship out
Contract funerals
Indigent cases
Memorial Society contract
Full service followed by cremation
Stillborns to children
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12
Q

One of the primary responsibilities of any business is to do what?

A

Generate enough profit to ensure its existence and ability to continue serving its clientele

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13
Q

How is profit accomplished?

A

Evaluate the market
Scrutinize sales history
Considerations regarding merchandise it plans to offer
Integrate product line with its existing service offerings

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14
Q

Evaluating the market includes

A

Demographics, vital statistics, economic base, and burial habits

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15
Q

How often should you evaluate your sales history?

A

6 months

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16
Q

To obtain by paying money or its equivalent to buy for a price

A

Purchasing

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17
Q

This will help maintain a balanced line in the selection room

A

Planned Buying

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18
Q

How many people should be assigned to purchasing per funeral home?

A

1

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19
Q

Why should a sales person never be allowed in your selection room?

A

Never let them see what you are buying
Never let them see who you are buying from
Never let them see your retail price

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20
Q

A reduction of the price given for payment of an account within the time limits established by the sales contract

A

Cash Discount

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21
Q

The amount by which the bill or invoice will be reduced when a minimum quantity of merchandise has been ordered

A

Quantity Discount

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22
Q

The return of a pertion of a payment

A

Rebate

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23
Q

To give an agent to be cared for or sold

A

Consignment

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24
Q

Successful merchandising of funeral goods will deliver __________ to the consuming public while simultaneously positively impacting funeral home operating revenue

A

Maximum Value

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25
Q

The purchasing, pricing, display, and sale of merchandise is

A

Merchandising

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26
Q

Critical to any funeral firm’s achieving its target profit is the careful development of __________

A

Sales Objectives

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27
Q

A reduction of the price given for payment of an account within the time limits established by the sales contract

A

Cash Discount

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28
Q

The amount by which the bill or invoice will be reduced when a minimum quantity of merchandise has been ordered

A

Quantity Discount

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29
Q

List the sales questions that must be answered as a funeral home develops its sales objectives

A

Evaluate the Market
Scrutinize sales history
What merchandising
Integrate proposed product line with existing offerings

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30
Q

The FTC requires funeral directors use what pricing system

A

Itemized

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31
Q

The method of price quotation by which each unit of service and/or merchandise is priced separately

A

Itemization

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32
Q

You can still offer packages as long as this happens

A

The family receives a fully itemized price list

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33
Q

A method of price quotation in which one price includes both service and casket

A

Unit Pricing

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34
Q

Developed between 1925 and 1937 to overcome multiunit pricing

A

Unit Pricing

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35
Q

This was the most significant in the development of the packaged funeral (unit pricing)

A

The Great Depression

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36
Q

Unit pricing eliminates what between services and merchandise

A

Arbitrary Division

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37
Q

Unit Pricing shows families total cost without bothersome details. This is known as

A

Bottom Line Philosophy

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38
Q

Unit pricing simplifies what?

A

Accounting and billing

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39
Q

Unit pricing simplifies explanation and is easily

A

Explained

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40
Q

Unit Pricing exaggerates the importance of this

A

Casket

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41
Q

Unit Pricing minimizes the importance of this

A

Service

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42
Q

Economically depressed consumers are usually subsidized by this in unit pricing

A

More Expensive packages

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43
Q

The consumer is unable to do this in unit pricing

A

Make a free selection of components

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44
Q

This is the only basis of comparison with competition in unit pricing

A

Total Price

45
Q

Unit pricing fails to educate the consumers on this

A

The true value of merchandise and service on the retail level

46
Q

A method of price quotation showing separately the price of the service to be rendered and the price of the casket

A

Bi-Unit Pricing

47
Q

The funeral directors who had no selection room were forced into this system out of necessity

A

Bi-Unit Pricing

48
Q

Why did funeral directors start using the bi-unit pricing strategy

A

They wanted to be seen as professionals

49
Q

What came from the need for the funeral directors to be seen as professionals?

A

The professional service charge

50
Q

Bi-unit pricing puts an emphasis on this, as well as merchandise

A

Service

51
Q

Consumers recognize this in bi-unit pricing

A

The value of service

52
Q

Bi-unit pricing permits

A

Equal charge for equal service

53
Q

Bi-Unit Pricing facilitates comparison between

A

Caskets and other commodities

54
Q

The division between service and merchandise in Bi-Unit Pricing is still arbitrary, so the question remains

A

Where to put overhead, where to put profit

55
Q

Bi-unit pricing may create _______ for the consumer

A

Confusion

56
Q

Bi-Unit pricing does not give the consumer freedom to

A

select components

57
Q

Each and every function, unit of service and item of merchandise is priced separately

A

Full Itemization

58
Q

Sometimes referred to as the historical pricing method

A

Full Itemization

59
Q

What are the common units in full itemization

A

Professional Services
Use of Facilities
Automotive Equipment
Merchandise

60
Q

Full itemization gives the consumer a _______ of the charge

A

Clear Understanding

61
Q

Services and merchandise are more thoroughly discussed in full itemization, and consumers are made to realize

A

All the components of a funeral

62
Q

What is the only non-declinable fee on the price list?

A

Professional services fee

63
Q

Charges broken down into several major component parts

A

Functional Pricing

64
Q

How many parts are normally in the Functional Pricing method

A

4

65
Q

What are the 4 components normally found in Functional Pricing?

A

Professional Service
Use of facilities
Rolling Stock
Merchandise

66
Q

Functional pricing was initiated to do what?

A

Impart more knowledge to the consumer

67
Q

Functional pricing was designed to bring ________________

A

Uniform order

68
Q

FTC requires _________

A

further itemization

69
Q

Functional Pricing was designed as a compromise to do what?

A

reduce pressure against funeral service by memorial societies

70
Q

Items obtained from a third party and paid for by the funeral provider on the purchaser’s behalf

A

Cash Advance items

71
Q

Cash Advance Items include

A 
Clergy
Death Notice
Certified copies of death certificate
Cemetery or crematory charges
Shipping costs
Flowers
Any other cash accomodation
72
Q

The difference between merchandise cost and selling price

A

Markup

73
Q

Wholesale cost / Retail Price

A

Consumer Value Index

74
Q

Wholesale cost / (Total merchandise + services)

A

Merchandise Value Ratio

75
Q

A pricing strategy in which a fixed amount chosen by determining the amount of profit it wishes to generate is added to every casket

A

Fixed Dollar Amount Method

76
Q

What is a major disadvantage to the Fixed Dollar Amount Method

A

Consumers that buy low end merchandise are unfairly penalized and receive little value for their dollar

77
Q

A price determination method whereby the mark-up is multiplied by a constant factor; Same mark-up applied to all caskets

A

Fixed Multiple Method

78
Q

A pricing method where the mark up varies; Higher priced caskets are given a higher mark up

A

Graduated Recovery

79
Q

A pricing method where there is an inverse relationship between the markup and the price of the casket; Higher caskets are given a lower markup

A

Declining Price Structure

80
Q

Similar to declining method except the lowest priced casket is less expensive

A

Modified Declining Price

81
Q

The sum of a group of numbers divided by the number of units

A

Average

82
Q

A value in an ordered set of values which represents the midpoint, whereby there are an equal number of values above and below the midpoint value

A

Median

83
Q

The number that appears most frequently in a listing of numbers

A

Mode

84
Q

A division of the total into four intervals, each one representing one-fourth of the total

A

Quartile

85
Q

The caskets sold in the 2nd and 3rd quartile

A

Range

86
Q

An out of date term used to describe having the correct number of caskets in each pricing quartile

A

Balanced Line

87
Q

The number of times sales in a given price bracket occur over a fixed period of time

A

Sales Frequency

88
Q

A chart on which all sales are listed showing the number of sales in any sales bracket

A

Sales frequency Chart

89
Q

The total number of units divided by 4

A

Unit Quartiles

90
Q

Division into fourths by price

A

Price Quartiles

91
Q

How many caskets should be in your display room

A

12-30

92
Q

How big should the display room be?

A

40-60 square feet per casket

93
Q

Amount of illumination produced by a source of one candle at a distance of one foot

A

Foot Candle

94
Q

How many foot candles should be in the display room

A

90-100

95
Q

Placing the caskets for selection in their order of increasing or decreasing value

A

Consecutive method

96
Q

Caskets grouped according to their relative positions within the value/price progression

A

Good-better-best

97
Q

The use of portions of caskets instead of full sized caskets

A

Fractional Display

98
Q

What is the difference between vaults and liners

A

Vaults seal; liners do not

99
Q

The process by which the consumer is informed about the products about to be purchased

A

Presentation

100
Q

There should be three constants for the presentation for every family coming into the arrangement room

A

Consumer receives the information he/she needs
Information given in patient and gentle manner
Try to reduce the family’s apprehension

101
Q

The method whereby the selection of the casket is made with the funeral director present

A

Direct Selection room procedure

102
Q

The method whereby the selection of the casket is made without the funeral director present

A

Indirect Selection room procedure

103
Q

A statement signed by the funeral director and the client or representative with copies retained by each party

A

Statement of Funeral Goods and Services Selected

104
Q

The Statement of Funeral Goods and Services Selected should be in TRIPLICATE

A

1 - goes in funeral home record
2 - Family
3 - Accountant

105
Q

The FTC and other are seeking to require by law a minimum of ___ area on the statement of funeral goods and services selected

A

7

106
Q

What are the areas that the FTC requires to be on the statement of funeral goods and services selected

A 
Professional Service Charge
Use of Facilities
Itemized cost of merchandise
Itemized costs of cash advancements
Clear and concise terms of payment
Itemized costs of rolling stock
Consumer clause and rage of merchandise
107
Q

There should be how many price sheets?

A

4

108
Q

What are the 4 different price sheets?

A

GPL
CPL
OBCPL
Statement of funeral goods and services selected

Management 2 (16 decks)

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