Funeral Merchandising unit 10
what is the mean?
-The average -Add all the numbers and divide by number of units
Describe the Fair Credit Reporting Act.
-an act which requires creditors to notify a potential recipient of credit whenever any adverse action or denal of credit was based on a credit report.
Define Installment Credit
-balance of costly goods paid for in small monthly (fractional) payments over a period of time.
Another name for Installment Credit
-closed ended credit
When a funeral home marks up their caskets by a constant factor it is known as?
-fixed dollar amount
Another name for revolving credit
-open ended credit
A pricing method where the funeral home groups together selected services or merchandise is known as?
-package pricing
A method of price quotation in which the one price includes both the services and merchandise is?
-unit pricing
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.
1
Describe the general procedure for collecting outstanding bills.
1. Send friendly reminder-this may be a letter that has nothing to do with payment 2. Send a reminder letter-this should specifically address payment. 3. personal contact-telephone is usually used. 4. collection agency or lawsuit to collect in court.
List and describe the 4 types of consumer credit
1. installment credit 2. charge accounts 3. revolving credit 4. credit card services
List the 4 most common problems associated with collecting credit payments.
1. the older an account becomes, the harder it is to collect. 2. Attempting to collect money due takes time away from other duties. 3. former custormers avoid their firm because it is embarrassing to meet one to whom they owe money. 4. collection ties up funds needed to operate other aspects of the business.
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 or 7
what is a fixed expense?
A cost that, for a given period of time and range of activity called the 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
what are fixed expenses?
A cost that, for a given period of time and range of activity called the 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.
what are variable expenses?
A cost which is uniform per unit, but fluctuates in total in direct proportion to change in the related total activity or volume
what is a variable expense?
A cost which is uniform per unit, but fluctuates in total in direct proportion to change in the related total activity or volume
define a markdown
A reduction of selling price below the original selling price.
define Credit
An agreement that payment for a product or service will be made at some later date.
what is the overhead?
Any cost not specifically associated with production of identifiable products and services
what is the Value Progression?
That as the price of caskets goes up, the perceived value increases.
what is the median?
The middle most number in an even set of numbers
define the Price Determination.
The overall method in which the funeral home establishes the selling price for services and merchandise is referred to as
what is the Consumer Value Index (CVI)?
The percentage derived by dividing the wholesale cost of the merchandise by the retail price of the merchandise.
define the breakeven point
The point at which total sales revenue equals total costs
define Range
The spread or range of the caskets can be determined by subtracting the least value from the greatest value (example: $2150-$495=$1655)
what is the formula to calculate the MVR (merchandise value ratio)?
Wholesale cost / (total of merchandise + services) = MVR
Define Revolving credit.
a line of credit that may be used over and over again up to a certain borrowing limit.
describe the Decreased Graduated Recovery Method a.k.a. Declining Price Structure
a markup that is inversely proportional to the wholesale cost of the casket.
describe the Modified Graduated Recovery Method a.k.a. Modified Declining Price Method
a markup that is inversely proportional to the wholesale cost of the casket.
define unit pricing
a method of price quotation in which one price includes both service and casket.
define functional pricing
a method of price quotation in which the charges are broken down into several major component parts such as professional services, facilities, automobile and merchandise.
define bi-unit pricing
a method of price quotation showing separately the price of the service to be rendered and the price of the casket.
describe the Fixed Dollar Amount Method
a pricing method by which all the caskets are increased by the same fixed price. In this method the higher priced caskets are the better deal because they go up by the same amount as the lowest priced casket.
describe the fixed dollar method of pricing
a pricing method by which all the caskets are increased by the same fixed price. In this method the higher priced caskets are the better deal because they go up by the same amount as the lowest priced casket.
describe the Fixed Multiple Method a.k.a. Straight Line a.k.a. Times factor
a pricing method by which all the caskets are marked up by multiplying them by the same number.
describe the fixed multiple method of pricing
a pricing method by which all the caskets are marked up by multiplying them by the same number.
describe the Graduated Recovery Method
a pricing method where the markup varies
what is the graduated recovery method?
a pricing method where the markup varies
define package pricing
a pricing method which groups together selected services and/or merchandise.
Describe the Equal Credit Opportunity Act.
an act which guarantees equal credit opportunity to all applicants for credit and prohibits credit discrimination on the basis of race, color, religion, national orgin, age, marital status, or because all or part of a person's income derives from any public assistance program.
Describe the Consumer Credit Protection Act.
an act which requires a seller to disclose terms of sale and give facts of actual interest rate and other charges.
Describe the Truth in Lending Act.
an act which requires lenders to inform borrowers of all direct, indirect and true costs of credit.
The sum of a group of numbers divided by the number of units.
average
A method of price quotation showing separately the price for services to be rendered and the price for the merchandise is?
bi-unit pricing
what is an example of Credit Card Services?
can be used at various businesses
The percentage derived by dividing the wholesale cost of the merchandise by the retail price of the merchandise.
consumer value index
An agreement that payment for a product or service will be made at some later date.
credit
The number of times a selected unit has sold of a given time period is known as?
frequency
A pricing method where the mark up varies is?
graduated recovery method
The difference between merchandise cost and selling price is?
gross margin
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?
itemization
The method of price quotation by which each unit of service or merchandise is priced separately is?
itemization
Reduction of selling price
markdown
The Difference between merchandise cost and selling price
markup
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 index
The number that occurs most frequently in a listing of numbers.
mode
what is an example of Installment credit (closed-ended credit)?
mortgage or car loan
Define Factoring.
obtaining cash before payments are received from customers by selling off ones accounts recievables to a third party
The method in which the funeral home establish the selling price for services and merchandise is?
price determination
The method by which the prices are explained to the consumer is?
price quotation
The upper and lower limits of a series of numbers
range
what is an example of Revolving credit (open-ended credit)?
such as a line of credit at a bank
what is the mode?
the amount that shows up most frequently in a set of numbers
what is a markup?
the difference between merchandise cost and selling price
define Quartiles
the division of the total number of merchandise into 4 equal segments
define itemization
the method of price and price quotation by which each unit of service and/or merchandise is priced separately.
define sales frequency
the number of times sales in a given price bracket occur over a fixed period of time
what is the Merchandise Value Ratio (MVR)?
the relationship between the wholesale cost of the merchandise and the total cost (both service and merchandise) to the consumer.
what is an example of Charge accounts?
usually these accounts can only be used at the business which is issuing the card.
what is the formula to calculate the CVI (consumer value index)?
wholesale cost / retail price = CVI
