Goods and services provided by internal service funds to other departments of the government are typically priced to:
A) Cover variable costs only.
B) Cover full costs (both fixed and variable).
C) Cover full costs, plus an additional charge to capital maintenance and anticipated expansion needs.
D) Cover full costs, plus an additional charge to ensure a reasonable profit.

Question

Quizplus · Accepted Answer

The Answer of Goods and services provided by internal service funds to other departments of the government are typically priced to:
A) Cover variable costs only.
B) Cover full costs (both fixed and variable).
C) Cover full costs, plus an additional charge to capital maintenance and anticipated expansion needs.
D) Cover full costs, plus an additional charge to ensure a reasonable profit.

Goods and Services Provided by Internal Service Funds to Other