FSE2201 FHMO

List the 4 most common problems associated with collecting credit payments

The older an account becomes the harder it is to collect; Attempting to collect money due takes time away from other duties; Former customers avoid the firm because it is embarrassing to meet one to whom they owe money; Collection ties up funds needed to operate other aspects of the business

A form of credit that is extended by one business to another business to help finance distribution of producer's goods

Trade Credit

An act which requires lenders to inform borrowers of all direct, indirect and true costs of credit

Truth in Lending Act

A method of price quotation in which one price includes both services and merchandise is?

Unit Pricing

A cost which is uniform per unit, but fluctuates in total in direct proportion to change in the related total activity or volume

Variable Expense

What is meant on an invoice that says "3/15, n/45" as the terms of a credit sale?

3% discount is given if paid w/in 15 days, otherwise entire balance is due in 45 days

Using the preferred formula for quartiles, compute the number of caskets needed in the 3rd quartile if there are 16 caskets in the selection room.

6.4 - 6 or 7 caskets

A method of classifying inventory items with categories which are of high-value, less costly, and/or low-cost items. The FD will have a large quantity of low-cost items on hand, very few high-cost items and a moderate number of the middle items.

ABC Method of inventory control

Making the public aware of services or a commodity that a business has for sale.

Advertising

The stand or support upon which a casket rests in the selection process.

Beir/casket stand

A method of price quotation showing separately the price for services to be rendered and the price for the merchandise is?

Bi-unit Pricing

The point at which a total sales revenue equals total costs

Break-even Point

Credit/Sales term CBD

Cash Before Delivery - payable prior to delivery

Credit/Sales term COD

Cash On Delivery - Payable at time goods are received

Credit/Sales term CWO

Cash With Order - payable at time of order

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

Cash discount

A device upon which two or three caskets are placed, one on top of the other for display.

Casket Rack

Sources of secondary market data

Chamber of Commerce Census Bureau Local Demographics

Another name for Installment Credit

Closed-ended credit

6 consumer buying motives

Comfort, Security, Prestige, Health, Convenience and Economy

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

Consecutive Method

The merchandising agreement whereby merchandise is given to FD to sell, but FD does not have to pay for merchandise that will be displayed until it is sold.

Consignment

An act which requires a seller to disclose terms of sale and give facts of actual interest rate and other charges

Consumer Credit Protection Act

The percentage derived by dividing the wholesale cost of the merchandise by the retail price of the merchandise.

Consumer Value Index (CVI)

What 2 buying motives influence most funeral home purchases?

Convenience Economy

An agreement that payment for a product or service will be made at some later date

Credit

Applies a markup that's inversely proportional to wholesale cost of casket

Decreased Graduated Recovery Method

The statistical study of human populations with respect to their size and density, distribution, composition, and income

Demographics

Three or four caskets utilized to educate the selecting party regarding the elements of casket construction.

Demonstration Group, Educational Group

Illumination directly shining on an object.

Direct Lighting

The method of selling caskets whereby the FD remains in selection room throughout selection process.

Direct Selection Room Procedure

The wealth produced in or near a community that provides employment and income to the local population

Economic Base of a Community

The quantity to be purchased which minimizes total cost.

Economic Order Quantity (EOQ)

What is the instructor's opinion of what merchandising includes?

Educating consumer on products which are availible

An act which guarantees equal credit opportunity to all applicants for credit and prohibits credit discrimination on the basis of race, color, religion, national origin, age, marital status or because all or part of a person's income derives from any public assistance program

Equal Credit Opportunity Act

What are the 4 steps to developing sales objectives?

Evaluate market, Evaluate sales history, Develop a proposed plan for inventory items, and Integrate inventory products w/ services offered

The process of obtaining cash before payments are received from customers by selling off one's accounts receivables to a third party

Factoring

An act which requires creditors to notify a potential recipient of credit whenever adverse action or denial of credit was based on a credit report

Fair Credit Reporting Act

Determine amount of profit wished to generate on each casket sale and then add this amount to wholesale cost of each casket offered

Fixed Dollar Amount Method

Which method of price determination is being used if the following amounts reflect the wholesale and retail price of 4 caskets? Casket Number Wholesale Retail 1 300 1300 2 1100 2100 3 650 1650 4 1000 2000

Fixed Dollar Amount Method

A cost that, for a given period of time and range of activity called relevant range, does not change in total but becomes progressively smaller on a per unit basis as volume increases; these expenses do not increase with increased business, nor do they decrease with declining business activity.

Fixed Expense

A price determination method whereby casket cost is multiplied by a constant factor

Fixed Multiple Method

Which method of price determination is being used if the following amounts reflect the wholesale and retail price of 4 caskets? Casket Number Wholesale Retail 1 300 750 2 1100 2750 3 650 1625 4 1000 2500

Fixed Multiple Method

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

Fluorescent Lighting

Use of portions of caskets (1/2 1/4 or 1/8) in the selection room.

Fractional Display

A method of price quotation in which the charges are broken down into several major component parts such as professional services, facilities, automobiles and merchandise is?

Functional Pricing

A pricing method where the mark up varies is?

Graduated Recovery

Which method of price determination is being used if the following amounts reflect the wholesale and retail price of 4 caskets? Casket Number Wholesale Retail 1 300 600 2 1100 3850 3 650 1625 4 1000 3000

Graduated Recovery

A pricing method where the markup varies

Graduated Recovery Method

The illumination resulting from the glowing of a heated filament.

Incandescent Lighting

Reflected illumination of an object

Indirect Lighting

The method of selling caskets whereby the FD does not stay in selection room during selection process.

Indirect Selection Room Procedure

Balance of costly goods paid for in small monthly/fractional payments over a period of time, i.e. mortgage

Installment Credit

4 Types of Consumer Credit

Installment Credit (close-ended), Charge Accounts, Revolving Credit (open-ended), and Credit Card Services

Those goods or stock which are held for resale.

Inventory

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

Inventory turnover

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

Itemization

What is usually done with those slow moving items which do not sell in a reasonable amount of time?

Lower price until it's perceived value to customer

Reduction of selling price

Markdown

A group of potential customers possessing purchasing power and unsatisfied needs

Market

The process of planning and executing the development, pricing, promotion and distribution of an organization's goods or services

Marketing

The difference between merchandise cost and selling price

Markup

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

Mean

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.

Median

The relationship between the wholesale cost of the merchandise and the total cost (both services and merchandise) to the consumer.

Merchandise Value Ratio (MVR)

The purchasing, pricing , display and sale of merchandise

Merchandising

The number that occurs most frequently in a listing of numbers.

Mode

The same as decreasing method except first entry-level offering receives a slightly less aggressive markup

Modified Graduated Recovery Method

Why is advertising important to a funeral home?

Name recognition, Attracts people, Helps build a good reputation, Build preference before need, and Basically informs public who you are and what you can provide for them

Another name for Revolving Credit

Open-ended credit

Any cost not specifically associated with production of identifiable products and services

Overhead

A pricing method where the funeral home groups together selected services or merchandise is known as?

Package Pricing

Credit term EOM

Payable at the End of the Month

Credit term MOM

Payable at the Middle of the Month

The method by which the prices are explained to the consumer is?

Price Quotation

The method in which the funeral home establishes the selling price for services and merchandise is?

Pricing Determination

What are 5 of the factors in determining inventory of be offered?

Product availability, Price, Quality, Eye appeal, and Supplier recommendation

Inducing the public to have a positive feeling about a particular business

Public relation

Reduction in the amount of a bill when a minimum quantity of merchandise has been ordered

Quantity discount

The upper and lower limits of a series of numbers.

Range

A return of a portion of payment

Rebate

Line of credit that may be used over and over again up to a certain borrowing limit

Revolving Credit

The number of times a selected unit has sold of a given time period is known as?

Sales Frequency

A plan which provides inducements to potential purchases of products and/or services

Sales Promotion

Describe the general procedure for collecting outstanding bills.

Send friendly reminder, Send reminder letter, Personal contact, and Collection agency or lawsuit to collect in court

Using the preferred formula for quartiles, compute the number of caskets needed in the 1st quartile if there are 8 caskets in the selection room.

.8 - so 1 casket