Minnesota State Mortician Practice Exam

What is an example of a cash advance item?

1. Funeral service fees

2. Obituary costs

3. Embalming charges

4. Grief counseling fees

The correct answer is: Obituary costs

A cash advance item refers to any service or product that the funeral home purchases on behalf of the family and for which they will pass the cost directly on to the family, typically requiring the family to reimburse the funeral home for that expense. Obituary costs fit this definition perfectly, as they are usually incurred when the funeral home places a notice in a newspaper or another publication for the family. Since this is a service that helps the family notify the community about the death but which the funeral home pays for upfront, it qualifies as a cash advance item. In contrast, funeral service fees, embalming charges, and grief counseling fees are generally considered service fees for the funeral home’s own service provision, rather than reimbursements for expenses incurred on behalf of the family. They are part of the overall pricing for the funeral services rather than additional costs passed directly from one party to another. Understanding this distinction is important when dealing with funeral arrangements and pricing disclosures.