Exam 2
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 B) Functional Pricing C) Unit Pricing D) Package Pricing
a
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 B) Unit Pricing C) Functional Pricing D) Package Pricing
a
How is a cash discount indicated on the invoice submitted to the customer? A) 2/10/N/30 B) 2/20/N/10 C) 2/20/N40 D) 1/20/N/30
a
If Martin Funeral Home implements a fixed multiple markup of 200% on all caskets, and they just purchased a casket for $500, calculate the retail price using this information A) $1000 B) $2000 C) $3000 D) $4000
a
If a funeral home sold four caskets this week for $895, $2,355, $5,500, and $2,475, what would be the median? A) $2,415.00 B) $2,515.00 C) $2,315.00 D) $2,615.00
a
The FTC allows the funeral director to offer special pricing packages along with other pricing systems. A) true B) false
a
The advantage of itemized pricing to the funeral home is: A) increased gross profit due to placement of a profit on each item B) billing and accounting are single C) profit margins and sales volume are easier to determine D) profit is placed only on the casket E) none of these
a
The difference between the wholesale cost and the retail price is called: A) Markup B) Rebate C) Net Cost D) Fixed Price
a
The following casket prices are selected within a week's time $4,000, $2,300, $2,200, $4,065; what would be the mean price for the week? A) $3,141.25 B) $4,000.75 C) $2,235 D) $4,065
a
The following statement "Represents the quantity to be purchased, which minimizes total costs" describes? A) Economic order quantity B) Inventory turnover C) Cash discount D) Rebate
a
The sum of a group of figures divided by the number of items: A) mean or average B) median C) mode D) morgue E) none of these
a
What on the funeral contract is taxed? A) Merchandise B) Services C) Cash advanced items D) Use of facilities
a
Which statement best describes fixed multiple markup: A) Wholesale is multiplied by a constant factor B) Increased wholesale, increases markup C) Wholesale cost goes up, markup goes down D) Keep price equal to quality of product
a
A method of pricing which places a price on three separate items of the service such as casket, facilities, and automobiles is called: A) bi-unit B) functional C) unit D) itemization E) none of these
b
Family Funeral Home purchased 3 new caskets, two units with a wholesale cost of $1200 and a costlier model with wholesale cost of $5600. The policy is to mark-up units below $2000 wholesale at 400% and units over $5000 wholesale at 300%. Which of the following statements is true based on this information? A) This is a Graduated Recovery Method B) This is a Declining Price Method C) This is a Fixed Multiple Markup D)None of the above
b
Fixed multiple markup is also known as: A) Fixed times B) Times factor C) Markup factor D) Markup times factor
b
Graduated recovery is best described as: A) Wholesale is multiplied by a constant factor B) Increased wholesale, increases markup C) Wholesale cost goes up, markup goes down D) Keep price equal to quality of product
b
If the most expensive casket on the CPL is $40,000 and the least expensive casket is $2,500 how would you identify the range? A) $14,500 B) $37,500 C) $2,500 D) $21,250
b
Of the following numbers, which is the mode: $1,300, $1,400, $2,000, $2,800, $1,400, $1,355? A) $1,355 B) $1,400 C) $2,000 D) $2,800
b
The amount added to the cost of an article to determine the selling price of that article: A) MVR B) mark-up C) CVI D) net profit E) all of these
b
The invoice from the Embalming Fluid Supplier Company shows a discount of 3/15/N/45. This is an example of: A) Quantity Discount B) Cash Discount C) Rebate D) Consignment
b
The method of price quotation by which each unit of service and or merchandise is priced separately. A) Unit Pricing B) Itemization C) Unit Pricing D) Package Pricing
b
The middle number when the numbers are arranged in their increasing value: A) mean B) median C) mode D) average E) none of these
b
The trading arrangement in which a seller sends goods to a buyer or re-seller who pays the seller only when the goods are sold is defined as: A) Rebates B) Consignment C) Cash Advance D) Supply and Demand
b
A deduction allowed by the seller of goods or by the provider of services in order to motivate the costumer to pay within a specified time is: A) Credit card discounts B) Money discounts C) Cash discounts D) Casket discounts
c
A grouping of three or four caskets utilized to educate the selecting party in the construction and features of the casket itself: A) indirect group B) direct group C) demonstration or educational group D) sales group E) none of these
c
A pricing procedure which creates a total price for service and casket is called: A) multi-unit B) functional C) unit D) itemization E) bi-unit
c
Calculate the consumer value index for a casket that cost the funeral home $1250.00 with a retail price of $2500.00. A) 10% B) 25% C) 50% D) 75%
c
Declining price is best described as: A) Wholesale is multiplied by a constant factor B) Increased wholesale, increases markup C) Wholesale cost goes up, markup goes down D) Keep price equal to quality of product
c
Family Funeral Home receives an invoice for 4 caskets ordered at $2,500 each. The invoice shows a discount of 3/10/N/30. How much is saved by paying 20 days sooner than the net is due? A) $9,700 B) 10% C) $300 D) $75
c
Martin Funeral Home purchased two new caskets, one Barnwood unit with a wholesale cost of $2500, and one Cherry with a wholesale cost of $4500. For this example, assume the funeral home will increase the Barnwood casket by 400% and the Cherry casket by 300%. This represents a declining price structure; determine the retail price for each casket. A) Barnwood $9500; Cherry $12,000 B) Barnwood $5600; Cherry $13,000 C) Barnwood $10,000; Cherry $13,500 D) Barnwood $6500; Cherry $5600
c
One of the following is an advantage of the Bi-unit pricing method: A) possible elimination of certain items of service B) exaggerates the value placed on services C) displays a more realistic value placed on the casket D) exaggerates the value placed on the casket E) complex billing and accounting procedure
c
That number which occurs most frequently: A) mean B) median C) mode D) average E) none of these
c
The excess of selling price over cost of merchandise: A) budget B) merchandising C) gross profit D) net profit E) overhead
c
The method whereby the selection of the casket is made without the funeral director present: A) direct selling B) pre-selling C) indirect selling D) post selling E) none of these
c
The percentage derived by dividing the wholesale amount of the merchandise by the retail price of the merchandise would be termed what? A) Sales Frequency B) Sales Data C) The Consumer Value Index (CVI) D) Merchandise Value Ratio (MVR)
c
What is a method of price quotation in which one price includes both services and casket? A) Bi-unit pricing B) Functional pricing C) Unit pricing D) Package pricing
c
What is the merchandise value ratio for a package that contains: Memorial service: $2000 Cremation: $1250 Urn: retail value $250, wholesale $100 Obituary: $500 Folders: retail value $150, wholesale $25 Fingerprint necklaces: retail value $300, wholesale $150 A) 10% B) 5% C) 4% D) 2%
c
Which statement is true? A) Median = Average; Mean = Midpoint; Mode = Frequency B) Mode = Average; Mean= Midpoint; Median= Frequency C) Median = Midpoint; Mean = Average; Mode= Frequency D) Mean= Frequency; Median= Midpoint; Mode= Average
c
A factor that can impact the actual cost of goods from vendors is called: A) Discounts B) Rebates C) Refunds D) All of these are correct.
d
A pricing method which groups together selected services and or merchandise: A) Functional Pricing B) Itemization C) Unit Pricing D) Package Pricing
d
A pricing procedure which places a price on each and every item of service and merchandise is called: A) multi-unit pricing B) functional pricing C) unit pricing D) itemized pricing E) bi-unit pricing
d
Any calculation that can provide insight into the operation with respect to the type of products and/or services clients and families are selecting is referred to as the: A) Merchandise Value Ratio B) Consumer Value Index C) Sales Frequency D) Sales Data
d
Family Funeral Home received a delivery of a variety of urns. For Urns they use the Fixed Multiple Markup method. If half the urns wholesale value is less than half the cost of the more expensive half what is the percentage the less expensive urns will be marked up? A) The more expensive urns will be marked up at less of a percentage then the cheaper urns. B) I need more information to calculate this. C) The less expensive urns will be marked up more than the cheaper urns. D) All of the urns will be marked up the same percentage, regardless of their wholesale price
d
Modified declining price is best described as: A) Wholesale is multiplied by a constant factor B) Increased wholesale, increases markup C) Wholesale cost goes up, markup goes down D) Keep price equal to quality of product
d
The most expensive casket on the CPL is $20,995, and the least expensive casket is $2,195. What is the range? A) $18,900.00 B) $17,800.00 C) $17,900.00 D) $18,800.00
d
The number of times the average inventory has been sold or used up during a period defines: A) Sales frequency B) Inventory C) Economic Order Quantity D) Inventory turnover E) Sales frequency chart
d
What does the 5 stand for in 5/10/N/30? A) Days to be paid B) Months allowed before merchandise can't be returned to the vendor C) Percentage to be paid in the first month D) Discount percentage
d
What is defined as the number of times average inventory has been sold or used during a period? A) Order quantity B) Merchandising C) Inventory control D) Inventory turnover
d
A pricing procedure which places a separate price on casket and a separate price on service fee is called: A) multi-unit pricing B) functional pricing C) unit pricing D) itemized pricing E) bi-unit pricing
e
