Arkansas State Board of Embalmers and Funeral Directors Service Laws, Rules, and Regulations (LRR) Practice Exam

If the prices of cash advance items are not known, what should be provided on the statement of goods and services?

1. A good faith estimate and a written statement of actual charges

2. A minimum price list for all services rendered

3. An itemized list of every service and charge

4. A verbal estimate only

The correct answer is: A good faith estimate and a written statement of actual charges

Providing a good faith estimate along with a written statement of actual charges is essential when cash advance items' prices are not known. This approach aligns with regulations that require transparency and fairness in funeral service pricing. A good faith estimate communicates to the family the potential costs they may incur, helping them plan and budget accordingly. Additionally, the written statement of actual charges ensures that the family receives a detailed account of the actual costs incurred, enabling them to understand and confirm the expenditure after the services have been rendered. This option recognizes the importance of both pre-service communication regarding potential costs and post-service accountability in itemized billing, reflecting a standard of ethical practice in the funeral industry that seeks to protect consumers. This method allows families to make informed decisions while also ensuring they're aware of the financial obligations they are taking on, which is crucial in this sensitive sector.