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NBE Arts practice questions

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Question 1Funeral Service Management

Under the FTC Funeral Rule, when must a funeral provider give a consumer the General Price List?

  1. Only after the consumer selects a casket
  2. After the consumer signs a preneed contract
  3. When the final bill is presented
  4. Before discussing funeral arrangements Correct answer.

Explanation

The Funeral Rule requires the General Price List to be handed to the consumer at the start of the discussion of funeral arrangements, before any selections are made. Providing it only after choices have been made or at billing defeats the rule's purpose of informed comparison.

Question 2Funeral Service Management

A funeral provider that offers caskets for sale must give the consumer which document before showing caskets?

  1. A burial-transit permit
  2. An embalming authorization form
  3. A death certificate application
  4. A Casket Price List Correct answer.

Explanation

When caskets are offered, the provider must give a Casket Price List before showing the caskets so the consumer can compare prices and models. The list must identify each casket and its price.

Question 3Funeral Service Management

Embalming may be performed only when:

  1. authorization from the person controlling disposition is obtained Correct answer.
  2. the death occurred in a licensed hospital or nursing home
  3. the family has requested a public viewing with an open casket
  4. the deceased person had been under hospice care for more than six months

Explanation

Authorization must come from the person with the legal right to control disposition, and the provider should document it. Embalming is not automatically required by age, viewing request, or place of death.

Question 4Funeral Service Management

If a consumer asks about prices by telephone, the funeral provider must:

  1. mail a price list within 30 days of the call
  2. provide accurate price information from the General Price List Correct answer.
  3. refuse to quote prices until an in-person meeting is scheduled
  4. quote only the basic services fee and ask the caller to visit

Explanation

Telephone callers are entitled to accurate price information from the General Price List. The provider may not force an in-person visit or limit the answer to one fee.

Question 5Funeral Service Management

Which fee covers services that are common to all funerals arranged by a provider?

  1. Basic services fee Correct answer.
  2. Cash advance fee
  3. Outer burial container fee
  4. Transfer of remains fee

Explanation

The basic services fee covers services common to all funerals, such as the arrangement conference and overhead, and is disclosed on the General Price List. It is not a third-party charge.

Question 6Funeral Service Management

Cash advance items are best described as:

  1. Goods or services paid to third parties on the family's behalf Correct answer.
  2. The funeral provider's own overhead charges for facilities and staff
  3. The funeral home's charge for use of its chapel for a service
  4. Optional gratuities given directly to funeral home employees

Explanation

Cash advance items are goods or services the funeral provider buys from third parties on the family's behalf, such as clergy honoraria or newspaper notices. The General Price List must disclose whether the provider adds a markup.

Question 7Funeral Service Management

A funeral provider tells a family that state law requires embalming for all deaths. This statement is:

  1. a matter of local custom that the provider may state as law
  2. required disclosure under the Funeral Rule
  3. a prohibited misrepresentation when not legally required Correct answer.
  4. acceptable because embalming is always required for viewing

Explanation

The Funeral Rule prohibits misrepresentations about legal requirements, including stating that embalming is required by law when it is not. State law may require embalming in limited circumstances, but a blanket claim is deceptive.

Question 8Funeral Service Management

Direct cremation typically includes:

  1. A graveside service with a vault and casket
  2. Cremation without a formal viewing or ceremony Correct answer.
  3. A full funeral service with embalming and a viewing
  4. A memorial service followed by burial

Explanation

Direct cremation generally means cremation without a formal viewing or ceremony, often with minimal services. It may still require permits and proper authorization.

Question 9Funeral Service Management

An alternative container for cremation is:

  1. A non-metal container used to hold remains for cremation Correct answer.
  2. An urn used to hold cremated remains
  3. A concrete vault placed in the grave
  4. A hardwood casket selected for a traditional funeral

Explanation

An alternative container is a non-metal receptacle, often fiberboard or cardboard, used for cremation when a casket is not selected. Providers must make one available.

Question 10Funeral Service Management

A funeral provider must accept a casket purchased from a third party and:

  1. may charge a casket handling fee of up to 10 percent
  2. cannot charge a casket handling fee for accepting it Correct answer.
  3. may refuse the casket unless it meets the home's specifications
  4. must require the family to purchase a casket from the funeral home

Explanation

The Funeral Rule requires providers to accept third-party caskets and prohibits charging a casket handling fee. The family may choose a casket from another seller.

Question 11Funeral Service Management

Under the Funeral Rule, a funeral provider may not require a family to buy a package that includes:

  1. basic services that the provider is required to furnish
  2. a casket selected from the provider's showroom
  3. goods or services the family does not want Correct answer.
  4. transfer of the deceased from the place of death

Explanation

The Funeral Rule prohibits requiring consumers to buy unwanted goods or services as a condition of receiving those they do want. Packages may be offered, but unwanted items must be removable.

Question 12Funeral Service Management

Which document is generally required before a body may be moved across state lines?

  1. A death certificate application
  2. A General Price List
  3. A preneed funeral contract
  4. A burial-transit permit Correct answer.

Explanation

A burial-transit permit, sometimes called a removal or transit permit, generally accompanies remains moved from one jurisdiction to another. It is issued by the appropriate vital records or health authority.

Question 13Funeral Service Management

Who typically obtains the signatures and files the death certificate with the local registrar?

  1. The family physician who signed the cause-of-death section
  2. The funeral director handling the arrangements Correct answer.
  3. The cemetery sexton who will open the grave
  4. The local health department clerk who issues the permit

Explanation

The funeral director usually obtains the medical certification, family information, and signatures and files the death certificate with the local registrar. This is part of funeral service management.

Question 14Funeral Service Management

Preneed funeral contracts funded by trust require that:

  1. The contract may omit the price of the goods and services
  2. Funds paid by the purchaser are placed in a trust account Correct answer.
  3. The purchaser loses all rights to cancel the contract
  4. The funeral provider may spend the funds immediately without accounting

Explanation

In a trust-funded preneed contract, the purchaser's payments are deposited into a trust account for future funeral goods and services. State law governs permissible withdrawals and accounting.

Question 15Funeral Service Management

An irrevocable preneed contract is often used because:

  1. It exempts the funeral provider from the Funeral Rule
  2. It allows the purchaser to cancel at any time for a full refund
  3. It can help the purchaser qualify for Medicaid Correct answer.
  4. It guarantees the funeral home will never be sold

Explanation

Irrevocable preneed contracts are often used in Medicaid planning because the funds are not counted as available assets, but the contract cannot be cashed out. Rules vary by state.

Question 16Funeral Service Management

What is the OSHA permissible exposure limit for formaldehyde over an 8-hour work shift?

  1. 50 ppm as an 8-hour time-weighted average
  2. 0.75 ppm as an 8-hour time-weighted average Correct answer.
  3. 0.075 ppm as an 8-hour time-weighted average
  4. 5.0 ppm as an 8-hour time-weighted average

Explanation

OSHA sets the formaldehyde permissible exposure limit at 0.75 ppm as an 8-hour time-weighted average, with a short-term exposure limit of 2 ppm. Monitoring and ventilation help maintain compliance.

Question 17Funeral Service Management

Standard precautions in the preparation room require that funeral service staff:

  1. Wear gloves only when the deceased had a known infection
  2. Use universal precautions only for bodies from hospitals
  3. Disinfect surfaces only at the end of each workday
  4. Treat all body fluids as infectious Correct answer.

Explanation

Standard precautions require treating all blood, body fluids, and potentially infectious materials as infectious regardless of known diagnosis. Gloves and other personal protective equipment are used as appropriate.

Question 18Funeral Service Management

After services are provided, the funeral provider must give the consumer:

  1. A verbal estimate of the final cost that may change
  2. A copy of the death certificate
  3. An itemized statement of services provided Correct answer.
  4. A list of future preneed specials

Explanation

After providing services, the funeral provider must give an itemized statement showing the goods and services supplied and the charges. This supports transparency and billing accuracy.

Question 19Funeral Service Management

Under the Funeral Rule, copies of price lists must be retained for at least:

  1. Indefinitely, as long as the funeral home is in business
  2. 30 days after the price list is first used
  3. Five years after the funeral is completed
  4. One year after the price list is superseded Correct answer.

Explanation

The Funeral Rule requires price lists to be retained for at least one year after they are superseded. This lets regulators verify what prices were disclosed.

Question 20Funeral Service Management

Preparation room ventilation should:

  1. Rely on room deodorizers instead of mechanical ventilation
  2. Seal the room completely to prevent odors from escaping
  3. Exhaust air to the outside and provide adequate ventilation Correct answer.
  4. Recirculate air through the preparation room to save energy

Explanation

Preparation rooms should be ventilated so air is exhausted to the outside, reducing exposure to formaldehyde and other chemicals. Recirculation or deodorizers do not substitute for mechanical ventilation.

Question 21Funeral Service Management

Aftercare programs are designed to:

  1. Replace the funeral director's legal responsibilities
  2. Sell additional merchandise to families after the funeral
  3. Collect outstanding balances from the estate
  4. Offer follow-up support to bereaved families Correct answer.

Explanation

Aftercare provides follow-up support, grief resources, and contact after the funeral. It is a service function, not a collections or sales program.

Question 22Funeral Service Management

Before cremation, the funeral provider must obtain:

  1. A signed statement from the attending physician
  2. Approval from the cemetery association
  3. Authorization from the disposition rights holder Correct answer.
  4. A copy of the deceased's will

Explanation

Cremation requires authorization from the person with the legal right to control disposition, consistent with state law and the provider's forms. A will or physician statement may be relevant but does not replace that authorization.

Question 23Funeral Service Management

If outer burial containers are offered, the Outer Burial Container Price List must be given:

  1. Before showing the outer containers Correct answer.
  2. Only after the family selects an outer burial container
  3. After the burial has taken place
  4. When the final bill is presented

Explanation

If outer burial containers are offered, the provider must give an Outer Burial Container Price List before showing them. This allows price comparison before selection.

Question 24Funeral Service Management

A preneed contract should disclose:

  1. Only the location of the funeral home
  2. Whether and how preneed funds are refundable Correct answer.
  3. Only the name of the funeral director
  4. Only the total contract price

Explanation

Preneed contracts should disclose material terms, including price, goods and services, and whether and how funds are refundable. State law adds specific requirements.

Question 25Funeral Service Management

The General Price List must include:

  1. An itemized price for each good and service offered Correct answer.
  2. Only the price of the least expensive package that the home offers
  3. Only the basic services fee
  4. Only the prices of caskets

Explanation

The General Price List must itemize the price of each funeral good and service offered, along with required disclosures. Package-only pricing does not satisfy the itemization requirement.

Question 26Funeral Service Management

Under the FTC Funeral Rule, when a consumer telephones a funeral provider and asks about prices, the provider must:

  1. require an in-person conference before quoting prices
  2. mail a General Price List to the caller before quoting any price over the phone
  3. quote only the price of its least expensive package
  4. give accurate prices from its price lists for requested items Correct answer.

Explanation

The Funeral Rule requires funeral providers to give accurate price information over the telephone for the specific items the consumer asks about. Mailing a printed price list is required only when the consumer requests a copy.

Question 27Funeral Service Management

A cemetery's perpetual care fund is intended primarily to:

  1. pay for monument engraving for indigent families
  2. provide for the ongoing maintenance of cemetery grounds Correct answer.
  3. cover the funeral director's commission on lot sales
  4. reimburse families for opening and closing fees

Explanation

Perpetual care, also called endowment care, sets aside money so that investment income can pay for long-term maintenance of the cemetery grounds. The principal is generally preserved rather than spent.

Question 28Funeral Service Management

The basic services fee on a funeral provider's General Price List is charged to:

  1. families who request embalming only
  2. families who purchase a casket from the provider only
  3. every family that uses the funeral provider Correct answer.
  4. families who hold services at the funeral home only

Explanation

The basic services fee covers overhead and the services common to every arrangement, so it is non-declinable. It applies to every family that uses the provider regardless of which other items are selected.

Question 29Funeral Service Management

A family signs a guaranteed preneed contract for $6,000 funded by a trust. At the time of death the trust contains only $5,400, while the provider's current price is $7,200. The provider generally must:

  1. bill the family the $1,800 difference between the trust and the current price
  2. deliver only the goods and services the trust balance will cover
  3. provide the services for the contract price and absorb the shortfall Correct answer.
  4. cancel the contract and refund the trust balance

Explanation

In a guaranteed contract the seller bears the risk that trust earnings will not keep pace with rising prices. The provider must deliver the agreed goods and services for the contract price even if the trust is insufficient.

Question 30Funeral Service Management

A cemetery's opening and closing fee typically covers:

  1. perpetual maintenance of the entire cemetery
  2. preparing the grave and closing it after interment Correct answer.
  3. the purchase price of the burial lot itself
  4. the cost of the outer burial container

Explanation

Opening and closing charges compensate the cemetery for labor and equipment used to open the grave before interment and close it afterward. They are billed separately from the lot price and from care fund contributions.

Question 31Funeral Service Management

A family wants to move a body from a local cemetery to a cemetery in another county. Before disinterment, the funeral provider should ensure that the family has:

  1. approval of the funeral home that conducted the original service
  2. the lot owner's authorization and required health permits Correct answer.
  3. a certified copy of the deed to the new cemetery lot
  4. written consent from the original embalmer

Explanation

Disinterment requires the consent of the party holding the right of burial, usually the lot owner or next of kin, along with any permits required by health or vital records authorities. A deed to a new lot does not authorize removal from the old one.

Question 32Funeral Service Management

When human remains are shipped by common carrier to another state, the funeral director generally must:

  1. cremate the remains before shipment to reduce weight
  2. remove all identifying tags to protect privacy
  3. use a proper container and obtain a transit permit Correct answer.
  4. ship the body only in a metal casket with an outer vault

Explanation

Interstate shipment by common carrier requires proper preparation and packaging of the remains plus a burial-transit permit acceptable to the receiving state. A metal casket and outer vault are not universal requirements.

Question 33Funeral Service Management

On a death certificate, the cause of death is ordinarily certified by the:

  1. attending physician or medical examiner/coroner Correct answer.
  2. local registrar who files the certificate
  3. hospital administrator where the death occurred
  4. licensed funeral director handling the arrangements

Explanation

The medical certification section of a death certificate must be completed by a physician or, in reportable deaths, by the medical examiner or coroner. Funeral directors complete demographic information and file the certificate but do not supply the medical opinion.

Question 34Funeral Service Management

A family asks to scatter cremated remains on privately owned farmland. The funeral provider should advise the family that scattering:

  1. may be done only by a licensed funeral director
  2. requires the property owner's permission and any local permits Correct answer.
  3. is prohibited on all private property in every state
  4. requires a burial transit permit in all circumstances

Explanation

Scattering on private land requires the consent of the property owner and compliance with applicable state or local restrictions. Scattering is not universally banned, and a transit permit is not the governing requirement for scattering.

Question 35Funeral Service Management

In a non-guaranteed preneed contract, the trust account has grown to more than the provider's current price at the time of death. Generally, the excess:

  1. must be donated to the cemetery's care fund
  2. is automatically retained by the funeral provider
  3. belongs to the purchaser or the estate Correct answer.
  4. is refunded only if the family requests cremation

Explanation

Under a non-guaranteed contract the purchaser carries the risk of a shortfall and therefore generally keeps any surplus above the price charged. State law and the contract terms control how the surplus is distributed.

Question 36Funeral Service Management

In an endowment care cemetery, the principal of the care fund is generally:

  1. transferred to the state unclaimed property fund
  2. distributed to lot owners as an annual dividend
  3. spent down over the first twenty years after the cemetery opens
  4. preserved, with only investment income used for maintenance Correct answer.

Explanation

Endowment care requires that the fund's principal remain intact so that only the earned income supports grounds maintenance. This structure allows the cemetery to be maintained indefinitely after all lots are sold.

Question 37Funeral Service Merchandising and Marketing

Which term refers to the complete assortment of products and services a funeral home offers for sale?

  1. Target market
  2. Markup
  3. Merchandise mix Correct answer.
  4. Distribution channel

Explanation

The merchandise mix, also called the product mix, is the total assortment of goods and services a funeral home makes available. It includes caskets, urns, vaults, and service options, not just one product line.

Question 38Funeral Service Merchandising and Marketing

A casket costs the funeral home $1,200 and is priced at $1,800. What is the markup percentage based on cost?

  1. 150%
  2. 66%
  3. 50% Correct answer.
  4. 33%

Explanation

Markup on cost is calculated as profit divided by cost: ($1,800 - $1,200) / $1,200 = 50%. The $600 profit is half of the $1,200 cost.

Question 39Funeral Service Merchandising and Marketing

In a selection room, placing the least expensive caskets nearest the entrance and higher-priced caskets toward the back is intended primarily to do what?

  1. Simplify delivery scheduling
  2. Discourage comparison shopping
  3. Reduce lighting requirements
  4. Encourage step-up selling Correct answer.

Explanation

Arranging caskets from lower to higher price as families move through the room supports step-up selling. The progression encourages consideration of higher-priced merchandise without pressure.

Question 40Funeral Service Merchandising and Marketing

Which item is specifically designed to hold cremated remains for burial or entombment?

  1. Memory board
  2. Register book
  3. Burial vault
  4. Urn Correct answer.

Explanation

An urn is the container designed to hold cremated remains for burial, entombment, or keeping. A burial vault surrounds a casket, while memory boards and register books are service records.

Question 41Funeral Service Merchandising and Marketing

Advertising that promotes a funeral home's general image rather than a specific price is called what?

  1. Institutional ads Correct answer.
  2. Comparative ads
  3. Coupon mailers
  4. Trade ads

Explanation

Institutional advertising, sometimes called image advertising, promotes the funeral home's overall reputation and services rather than a specific price or item. It builds long-term community recognition.

Question 42Funeral Service Merchandising and Marketing

The first step in a systematic approach to merchandising in funeral service is generally to do what?

  1. Design a brochure
  2. Order inventory first
  3. Assess family needs Correct answer.
  4. Quote final price

Explanation

A systematic merchandising process begins with assessing the family's needs, preferences, and budget before presenting merchandise. Inventory, pricing, and brochures support that assessment rather than precede it.

Question 43Funeral Service Merchandising and Marketing

Which term describes a question that invites a family to express preferences in their own words?

  1. Closed question
  2. Rhetorical question
  3. Leading question
  4. Open-ended prompt Correct answer.

Explanation

An open-ended prompt invites a family to describe preferences and concerns in their own words. It produces richer information than a question answerable with yes or no.

Question 44Funeral Service Merchandising and Marketing

A funeral home wants a running record that shows caskets and urns received, sold, and on hand. Which document should it use?

  1. Selection register
  2. Preneed contract
  3. Inventory ledger Correct answer.
  4. Price list

Explanation

A perpetual inventory record continually updates quantities received, sold, and on hand. It helps a funeral home avoid stockouts and excessive inventory.

Question 45Funeral Service Merchandising and Marketing

A funeral home sets a casket price by doubling its wholesale cost. Which pricing method is being used?

  1. Penetration pricing
  2. Loss-leader pricing
  3. Bundled pricing
  4. Keystone pricing Correct answer.

Explanation

Keystone pricing doubles the wholesale cost to set the retail price. It is a simple cost-based method common in merchandise retailing.

Question 46Funeral Service Merchandising and Marketing

Which practice best helps a funeral home compete with online casket sellers when families visit the selection room?

  1. Limiting selection to one room
  2. Removing every printed price tag
  3. Clear prices and expert staff Correct answer.
  4. Discouraging family questions

Explanation

Families often compare online prices, so clear pricing and knowledgeable staff help justify the funeral home's value and reduce uncertainty. This approach competes on service and transparency rather than hiding information.

Question 47Funeral Service Merchandising and Marketing

A funeral home decides to focus its advertising on families who choose cremation with a memorial reception. This group is the home's what?

  1. Promotional mix
  2. Price point
  3. Target market Correct answer.
  4. Distribution channel

Explanation

A target market is the specific group of consumers whose needs a business chooses to serve with its marketing efforts. Focusing on cremation-with-reception families is a targeting decision.

Question 48Funeral Service Merchandising and Marketing

The combination of advertising, personal selling, public relations, and sales promotion used by a funeral home is its what?

  1. Promotional mix Correct answer.
  2. Service blueprint
  3. Merchandise mix
  4. Target market

Explanation

The promotional mix is the blend of advertising, personal selling, public relations, and sales promotion a business uses. It is distinct from the merchandise mix, which concerns products offered.

Question 49Funeral Service Merchandising and Marketing

A family selects a mid-priced casket after discussing the deceased's wishes and comparing value. Which factor most directly shapes this choice?

  1. Family wishes and value Correct answer.
  2. Local zoning rules
  3. Inventory turnover rate
  4. Director's commission

Explanation

Consumer buying behavior in funeral service is strongly shaped by the deceased's expressed wishes and the family's judgment of value. These personal and perceptual factors outweigh internal operational measures.

Question 50Funeral Service Merchandising and Marketing

Why does a funeral home commonly offer preneed merchandise selection?

  1. To cut inventory records
  2. To fund selected goods Correct answer.
  3. To postpone all service decisions
  4. To avoid disclosure rules

Explanation

Preneed merchandising lets families select and fund merchandise in advance, often through a trust or insurance product. It records preferences and may provide price protection according to the contract.