Klicker Chapter 11 Flashcards Preview

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Flashcards in Klicker Chapter 11 Deck (23):
1

The percentage derived by dividing the wholesale amount of the merchandise by the retail price of the merchandise

Consumer Value Index

2

CVI =

Wholesale Cost / Retail Price

3

Measures the value received for each dollar spent by the consumer

CVI

4

Gross Profit Margin =

Retail Price - Wholesale Cost

5

Measure profit of each casket to the funeral director/firm

Gross Profit Margin

6

The relationship between the wholesale cos of the merchandise and the total cost of both service and merchandise to the consumer

Merchandise Value Ratio

7

MVR =

Wholesale Cost / Service and Merchandise

8

A price determination method whereby the mark-up is multiplied by a constant factor; same mark up is applied to all caskets

Fixed Multiple of Times Factor

9

The sum of a group of numbers divided by the number of units

Average (Mean)

10

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

11

The number that appears most frequently in a listing of numbers

Mode

12

A division of the total into four intervals, each one representing one-forth of the total

Quartile

13

The caskets sold in the 2nd and 3rd quartile

Range

14

In a display room that contains 22 caskets, describe the quartile

1st: 10% = 2.2 or 2
2nd: 27% = 5.9 or 6
3rd: 40% = 8.8 or 9
4th: 23% = 5.06 or 5

67% of caskets are in the range - most will buy out of the 2nd and 3rd quartiles

15

The FTC requires that funeral directors use this pricing system

Itimized

16

A method of pricing by which each unit of service and merchandise is priced separately

Itemization

17

A method of price quotation which creates one total price package for both service and merchandise

Unit Pricing

18

A method of price quotation showing separately the price of the services and the price of the casket

Bi-Unit Pricing

19

A method of price quotation by which the charges are broken down into several component parts, such as professional service, facilities, automobile, and merchandise

Functional Pricing

20

A method of price quotation where certain items of service and merchandise are grouped together and sold at a specific price

Package Pricing

21

Factors which influence pricing

Competition's price policies
Legislation
Production costs
Distribution costs
Economic fluctuations
Type of merchandise
Marketing strategy
Purchasing practices
Selling costs
Value

22

Difference between merchandise cost and selling price

Mark Up

23

Reduction of selling price

Mark Down