Exam 2 Study Guide

Question 1

The illumination resulting from the glow of a heated filament

Answer 1

Incandescent

Question 2

When inventory is purchased which minimizes the total costs. the system employed is known as what?

Answer 2

Economic Order Quantity

Question 3

Most sales objectives are based on what?

Answer 3

Sales History
Availability of products
Amount of profit

Question 4

The funeral director’s ___________ is the ability to give a good presentation and answer questions presented to the family during the arrangement conference

Answer 4

Product Knowledge

Question 5

When a supplier offers a reduction of the price given for payment of an account within the time limits established by the sales contract a ________ is given

Answer 5

Cash Discount

Question 6

What is the alternative pricing group?

Answer 6

Low-, medium-, and high- priced units in one grouping

Question 7

What do we need to do in the pre-selection room introduction?

Answer 7

Remain in compliance with the state and federal regulations
Give them GPL, CPL, Outer Burial Container Price List, and Facts About Funeral brochure
Provide the family with a subtotal of funeral home charges before they choose a casket

Question 8

The purchasing, pricing, display and sale of the product is known as?

Answer 8

Merchandising

Question 9

What are the 3 methods of casket grouping?

Answer 9

Consecutive
Material
Alternate

Question 10

That group of caskets used when introducing the family to the display room

Answer 10

Demonstration Group

Question 11

What is the Fixed Multiple equation?

Answer 11

Wholesale cost x Fixed Multiple = Selling Price

Question 12

One total price for both services and merchandise

Answer 12

Unit Pricing

Question 13

What is the equation for the CVI?

Answer 13

Wholesale Cost / Retail Price = CVI

Question 14

What does CVI measure?

Answer 14

The value received for each dollar spent by the consumer

Question 15

What does the CVI ensure?

Answer 15

Value progression

Question 16

Priced by component part.
Professional services, transportation, facilities, merchandise, etc. etc.

Answer 16

Functional Pricing

Question 17

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

Answer 17

Median

Question 18

Number that appears most frequently in a listing of numbers

Answer 18

Mode

Question 19

What does the fixed multiple pricing entail?

Answer 19

No incentive to buy up
No improvement on CVI

Question 20

What’s the equation for Merchandise Value Ratio?

Answer 20

Wholesale Cost / Service AND Merchandise

Question 21

Price of service of caskets are listed separately

Answer 21

Bi Unit Pricing

Question 22

The caskets sold in the 2nd and 3rd quartile

Answer 22

Range

Question 23

Pricing structure where the markup varies
Higher priced caskets are given higher markup

Answer 23

Graduated Recovery

Question 24

What is the advantage to Graduated Recovery?

Answer 24

Makes lower cost available

Question 25

What are the disadvantages for Graduated Recovery?

Answer 25

- Lower CVI - Low margin at low end - Best value is at low end

Question 26

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

Answer 26

Mean

Question 27

Measures the profit of each casket for the funeral home

Answer 27

Gross Casket Profit (Profit Margin)

Question 28

Reflected illumination of an object defines ____________ lighting

Answer 28

Indirect

Question 29

Light shining directly on an object

Answer 29

Direct Lighting

Question 30

A style of presentation whereby the funeral director remains in the selection room with the family

Answer 30

Direct Selection Room Procedure

Question 31

What are advantages to direct selection room procedures?

Answer 31

Families will have the support of the Funeral Director We can better meet their needs

Question 32

What are the disadvantages of the direct selection room procedure?

Answer 32

No privacy for family Funeral Director may influence family's choice Nonverbal communication can help or harm Funeral Director can misread needs of the family

Question 33

Casket presentation whereby the funeral director does not stay in the selection room

Answer 33

Indirect Selection Room Procedure

Question 34

What are the requirements for the indirect selection room procedure?

Answer 34

Adequate pre-counseling by the funeral director Signage with complete information about each casket

Question 35

What are the advantages for the indirect selection room procedure?

Answer 35

Privacy for family No funeral director influence No nonverbal communication No misinterpretation Casket information can be studied

Question 36

What are disadvantages for the indirect selection room procedure?

Answer 36

Some families will see the funeral director as support Funeral director can't answer questions Casket information may be misunderstood

Question 37

The illumination produced by a tubular electric discharge lamp; the fluorescence of phosphors coating the inside of a glass tube

Answer 37

Fluorescent Lighting

Question 38

The itemized list given to the families when first meeting

Answer 38

General Price List

Question 39

Number of units purchased to get a discount from the supplier

Answer 39

Economic Order Quantity

Question 40

Inverse relationship between markup and price of casket Higher priced casket given a lower markup

Answer 40

Declining Price Structure

Question 41

What is the advantage of the declining price structure?

Answer 41

CVI improves on higher price caskets

Question 42

What are the disadvantages to the declining price structure?

Answer 42

Low end markup may be too aggressive Encourages consumer to buy better merchandise

Question 43

1/4 of the total number

Answer 43

Quartile

Question 44

When the funeral director is not required to pay for the merchandise that will be displayed until it is sold is called

Answer 44

Consignment

Question 45

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

Answer 45

Sales Frequency

Question 46

Merchandise for resale

Answer 46

Inventory