Arkansas State Board of Embalmers and Funeral Directors Service Laws, Rules, and Regulations (LRR) Practice Exam

Items such as flowers and death certificates that are provided by a third party at the time of death are classified as what?

1. Service items

2. Cash advance items

3. Complimentary items

4. General expenses

The correct answer is: Cash advance items

The classification of items such as flowers and death certificates provided by a third party at the time of death as cash advance items is based on the nature of these purchases. Cash advance items are those that are not directly sold by the funeral home but are purchased on behalf of the family, with the cost being passed on to them. These items can include various goods and services that the funeral home arranges for the family, where payment is made upfront to the third party, and the funeral home typically adds a handling fee. The reason this classification is important is that it allows transparency in pricing; families are informed about additional costs incurred for these third-party services. In contrast, other classifications such as service items would pertain to services directly provided by the funeral establishment, complimentary items would suggest a cost-free offering from the funeral home, and general expenses refer broadly to various overhead costs that do not fit neatly into the provided categories.