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MOR 215: Funeral Merchandising > Test 2 > Flashcards

Test 2 Flashcards

1
Q

A pricing procedure which creates a total price for service and casket is called:

A

Unit

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2
Q

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

A

Merchandising

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3
Q

If the wholesale casket cost is $600 and the retail price is $1500, figure the margin:

A

$900

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4
Q

The Economic Order Quantity (EOQ) is the quantity to be purchased which minimizes total cost in an effort to increase profits (T/F)

A

True

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5
Q

The excess of selling price over cost of merchandise:

A

Gross profit

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6
Q

The FTC allows the funeral director to offer special pricing packages along with other pricing systems (T/F)

A

True

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7
Q

Higher priced caskets are given a lower markup when using the Graduated Recovery method of pricing (T/F)

A

False

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8
Q

If an invoice is noted: 2/10, net 30, then there is a cash discount of 2% available if paid within 10 days (T/F)

A

True

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9
Q

Using the Modified Declining Price method provides for a reduced markup on the low-end casket thus providing an option for families to purchase lower-priced caskets, and the CVI improves with the higher priced caskets (T/F)

A

True

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10
Q

Offering a family a place to sit in the selection room is the only reason to have a placement of furniture available (T/F)

A

False

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11
Q

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

A

Indirect selling

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12
Q

A pricing procedure which places a price on each and every item of service and merchandise is called:

A

Itemized pricing

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13
Q

A Balanced Line of merchandise is an old term used to describe having the correct number of caskets in each pricing quartile (T/F)

A

True

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14
Q

The Straight Line method of pricing is easy to use, provides quality control and has a constant CVI (T/F)

A

True

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15
Q

The price of the funeral is based on:

A
  • Overhead
  • Human need
  • Competition
  • Business ethics
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16
Q

There are several characteristics of the cremation consumer. The consumer that typically calls on a price and service best describes which segment?

A

Baby Boomers

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17
Q

The sum of a group of figures divided by the number of items

A
  • Mean

* Average

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18
Q

Cremation began during:

A

Early Stone Ages

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19
Q

The advantage of itemized pricing to the funeral home is:

A

Increased gross profit due to placement of a profit on each item

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20
Q

A church truck may be used as a casket standard if necessary (T/F)

A

True

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21
Q

Sum of a group of figures divided by the number of units

A

Mean

22
Q

Advantage of the bi-unit pricing method:

A

Displays a more realistic value placed on the casket

23
Q

Find the mode. A director’s sales for the week were: $750, $1100, $1100, $1225, $1250, $1525, $1100, and $1100

A

$1100

24
Q

The direct selection room presentation allows the family to have privacy and offers support (T/F)

A

False

25
Q

The middle number when the numbers are arranged in their increasing value

A

Median

26
Q

The wholesale cost of a casket is $600 and the retail price is $1500. What is the CVI?

A

40

27
Q

The number of times the average inventory has been sold or used up during a period defines:

A

Inventory turnover

28
Q

If the wholesale casket cost is $750 and the total of the service and merchandise is $5300, what is the MVR

A

14

29
Q

A method of pricing which places a price on three separate items of the service such as casket, facilities, and automobiles is called:

A

Functional

30
Q

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

A

Direct selling

31
Q

As noted in the Declining Price Structure method, the higher priced caskets are given a lower markup and the lower priced caskets are given a higher markup which may be too aggressive for some markets (T/F)

A

True

32
Q

Although they practiced earth burial, cremation was the predominant mode of disposition in Greece (T/F)

A

True

33
Q

If a casket cost $500 wholesale and the funeral home’s fixed multiple is 5, then the selling price of the casket would be:

A

$2500

34
Q

What are factors which may influence pricing?

A
  • Legislation / fair trade laws
  • Production costs
  • Distribution costs
  • Purchasing practices
35
Q

If the director’s sales for the week were $750, $2400, $4500, $3000, and $2500, find the median

A

$2500

36
Q

The amount added to the cost of an article to determine the selling price of that article

A

Mark-up

37
Q

The demonstration or educational group of caskets should incorporate five or six caskets to educate the selecting party regarding the various elements of caskets and their features (T/F)

A

False

38
Q

The FTC requires that funeral directors use an itemized pricing system (T/F)

A

True

39
Q

Caskets may be grouped in the selection room by:

A
  • Appearance
  • Style
  • Alternating pricing
  • Materials
40
Q

Research studies have found that cremation consumers are more educated, less religious and have higher employment and income levels (T/F)

A

True

41
Q

A group of three or four caskets utilized to educate the selecting party in the construction and features of the casket itself

A

Demonstration or educational group

42
Q

Any pricing method would take into consideration

A
  • Price gap
  • Mark-up on wholesale casket cost
  • Wholesale casket cost
  • Sales goals and objectives
43
Q

The Economic Order Quantity (EOQ) represents the number of times the average inventory has been sold or used up during a certain period (T/F)

A

False

44
Q

That number which occurs most frequently

A

Mode

45
Q

Sales objectives should include considerations for cost of living increases, cost of goods increases, legitimate profit and suppliers’ recommendations (T/F)

A

True

46
Q

A pricing procedure which places a separate price on casket and a separate price on service fee is called:

A

Bi-unit pricing

47
Q

Survey statistics indicate that the primary reason people choose cremation is because it is simpler and saves land (T/F)

A

False

48
Q

Disadvantage of itemized pricing:

A

Possible elimination of certain items of service resulting in loss of overhead recovery

49
Q

A director’s sales for the week were $750, $2400, $4500, $3000, and $2500. What is the mean?

A

$2630

50
Q

The indirect selection room procedure offers families support and privacy without influencing the selection (T/F)

A

False

MOR 215: Funeral Merchandising (20 decks)

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