Which of the following is NOT listed as a cash advance item example?

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Prepare for the AAMI Funeral Home Management And Merchandising Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Multiple Choice

Which of the following is NOT listed as a cash advance item example?

Explanation:
Cash advance items are costs the funeral home incurs on the family’s behalf and then bills back as pass-through charges to third parties. They cover services or goods arranged through outside vendors, such as flowers, obituary notices, and nursing or other service fees. The casket, on the other hand, is a merchandise item sold directly as part of the funeral service rather than a pass-through expense. Since it’s a direct sale of a product rather than a third-party service the home handles on the family’s behalf, it is not a cash advance item.

Cash advance items are costs the funeral home incurs on the family’s behalf and then bills back as pass-through charges to third parties. They cover services or goods arranged through outside vendors, such as flowers, obituary notices, and nursing or other service fees. The casket, on the other hand, is a merchandise item sold directly as part of the funeral service rather than a pass-through expense. Since it’s a direct sale of a product rather than a third-party service the home handles on the family’s behalf, it is not a cash advance item.

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