FSE 2201 - FHMO - SPC EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED
What is inventory?
Goods held for resale.
When considering inventory control, what method can be used to minimize total
cost?
Quantity to be purchase
Why should a funeral home be concerned about making a profit?
Not altruistic.
What must be determined to set funeral home pricing?
Operating costs.
What is the recent trend in funeral service pricing strategies?
Decrease casket cost, increase basic services.
What is loss leader pricing?
Advertise lower price, hope for more expensive selection.
What is psychological pricing?
Odd number pricing.
What is package pricing?
Services and merchandise together with savings.
What must a funeral home comply with when setting pricing strategy?
,State and federal laws.
What affects price determination?
Types of merchandise offered.
What factors should be considered when selecting a supplier?
Quality, discount, speed of delivery, warranties.
What factors should be considered when selecting a supplier?
Cost, economic order turnover, loss leader supplier pricing discounts, and whether to
purchase from a wholesaler.
What is economic order quality?
Inventory control.
What are some overhead expenses to consider when determining operating
costs?
Rent, salaries, electricity.
What does pricing determine?
How much to charge for services and merchandise.
What are the three methods of pricing?
Cost-plus mark-up, competition based, and economy.
What is penetration pricing?
Setting a low price to attract customers at first, then raising the price.
What factors can affect pricing strategies?
Customer basis, purchasing practices, types of merchandise, and legal factors.
What is a casket?
A rigid container designed for the encasement of human remains.
, What are alternative containers or caskets made of?
Wood byproducts.
What is composition board?
Pressed board, flake board, or particle board.
What is plywood?
Thin sheets of wood glued together, using an odd number of sheets.
What predated the casket?
Wood coffins built by the deceased's family or cabinet makers.
Where are caskets typically used?
North America.
What are some hardwoods used to construct caskets?
Oak, Cherry, Birch.
What is hardwood?
Wood that comes from trees who lose their leaves annually.
What is another name for wood byproducts?
Corrugated fiberboard.
What is mahogany?
A fine-grained hardwood in reddish-brown appearance.
Do wood caskets offer the same protection as metal gasketed caskets?
No.
What is softwood?
Material that comes from cone bearing trees.
What are laminates and wood byproduct caskets examples of?
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED
What is inventory?
Goods held for resale.
When considering inventory control, what method can be used to minimize total
cost?
Quantity to be purchase
Why should a funeral home be concerned about making a profit?
Not altruistic.
What must be determined to set funeral home pricing?
Operating costs.
What is the recent trend in funeral service pricing strategies?
Decrease casket cost, increase basic services.
What is loss leader pricing?
Advertise lower price, hope for more expensive selection.
What is psychological pricing?
Odd number pricing.
What is package pricing?
Services and merchandise together with savings.
What must a funeral home comply with when setting pricing strategy?
,State and federal laws.
What affects price determination?
Types of merchandise offered.
What factors should be considered when selecting a supplier?
Quality, discount, speed of delivery, warranties.
What factors should be considered when selecting a supplier?
Cost, economic order turnover, loss leader supplier pricing discounts, and whether to
purchase from a wholesaler.
What is economic order quality?
Inventory control.
What are some overhead expenses to consider when determining operating
costs?
Rent, salaries, electricity.
What does pricing determine?
How much to charge for services and merchandise.
What are the three methods of pricing?
Cost-plus mark-up, competition based, and economy.
What is penetration pricing?
Setting a low price to attract customers at first, then raising the price.
What factors can affect pricing strategies?
Customer basis, purchasing practices, types of merchandise, and legal factors.
What is a casket?
A rigid container designed for the encasement of human remains.
, What are alternative containers or caskets made of?
Wood byproducts.
What is composition board?
Pressed board, flake board, or particle board.
What is plywood?
Thin sheets of wood glued together, using an odd number of sheets.
What predated the casket?
Wood coffins built by the deceased's family or cabinet makers.
Where are caskets typically used?
North America.
What are some hardwoods used to construct caskets?
Oak, Cherry, Birch.
What is hardwood?
Wood that comes from trees who lose their leaves annually.
What is another name for wood byproducts?
Corrugated fiberboard.
What is mahogany?
A fine-grained hardwood in reddish-brown appearance.
Do wood caskets offer the same protection as metal gasketed caskets?
No.
What is softwood?
Material that comes from cone bearing trees.
What are laminates and wood byproduct caskets examples of?
