New Jersey Mortuary Science Practice Exam

What does the term "cash advance item" refer to in funeral services?

1. An item purchased in advance by the funeral provider

2. Items described as accommodations or similar terms paid on behalf of the purchaser

3. Additional charges added after the service has been rendered

4. Refundable deposits for funeral services

The correct answer is: Items described as accommodations or similar terms paid on behalf of the purchaser

The term "cash advance item" refers to expenses incurred by the funeral provider that are paid on behalf of the purchaser, which can include costs such as death certificates, newspaper obituaries, clergy fees, and transportation for the deceased. These items are termed "cash advance" because the funeral home purchases them upfront on behalf of the family and then adds the cost to the final bill. This terminology is significant in funeral services as it helps both funeral providers and consumers understand what specific expenses are separate from the service fees charged by the funeral home itself. The term emphasizes the aspect of prepayment for services that involve third-party vendors, ensuring transparency in the billing process and helping families manage their budgets during a challenging time.