BMS Bachelor of Mortuary Science Funeral Home Business Management Questions and Answers Flashcards

What is the purpose of conducting a SWOT analysis for a funeral home business?

Answer: To evaluate strengths, weaknesses, opportunities, and threats facing the business

A SWOT analysis identifies internal strengths and weaknesses along with external opportunities and threats to guide strategic business planning.

Which accounting method records revenue when cash is actually received and expenses when cash is actually paid?

Answer: Cash basis accounting

Cash basis accounting recognizes revenue upon receipt of payment and expenses upon disbursement of cash.

What is the standard document used to outline the terms, services selected, and total cost agreed upon between a funeral home and a client family?

Answer: A funeral service agreement or contract

A funeral service agreement or contract details all selected services, merchandise, and the total cost agreed upon by the funeral home and the client family.

In funeral home management, what does 'merchandising' primarily refer to?

Answer: The selection, display, and sale of funeral goods such as caskets and urns

Merchandising in funeral service involves the strategic selection, presentation, and sale of funeral goods including caskets, urns, and related products.

Which federal agency enforces the Funeral Rule that governs funeral home pricing and sales practices?

Answer: Federal Trade Commission (FTC)

The Federal Trade Commission enforces the Funeral Rule, which regulates pricing disclosures and prohibits certain unfair practices by funeral providers.

What is a key financial metric that measures how much revenue a funeral home earns per service call?

Answer: Average revenue per call

Average revenue per call measures the mean income generated from each funeral service handled, and is a primary performance indicator for funeral homes.