Which term means to give merchandise to an agent to be cared for or sold; the funeral director has merchandise to display but does not pay until it is sold?

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 term means to give merchandise to an agent to be cared for or sold; the funeral director has merchandise to display but does not pay until it is sold?

Explanation:
Consignment is a system where the merchandise is given to an agent to display and sell, but ownership remains with the supplier until a sale occurs. For a funeral director, this means items like caskets or urns can be shown to families without paying upfront; when a sale happens, the director remits the agreed amount to the supplier and keeps the remaining proceeds as profit or as a commission. If items don’t sell in the agreed period, they’re typically returned or the agreement adjusted. This arrangement helps the funeral home offer a wider range of products with less tied-up capital while giving the supplier expanded sales exposure. The term does not describe metal deposits, a corner location, or packaging containers.

Consignment is a system where the merchandise is given to an agent to display and sell, but ownership remains with the supplier until a sale occurs. For a funeral director, this means items like caskets or urns can be shown to families without paying upfront; when a sale happens, the director remits the agreed amount to the supplier and keeps the remaining proceeds as profit or as a commission. If items don’t sell in the agreed period, they’re typically returned or the agreement adjusted. This arrangement helps the funeral home offer a wider range of products with less tied-up capital while giving the supplier expanded sales exposure. The term does not describe metal deposits, a corner location, or packaging containers.

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