Internal Service Funds Should Be Used Only If

question 9

Multiple Choice

Internal service funds should be used only if:

• A) The reporting government funds the activity with general obligation debt.
• B) The reporting government provides services primarily to external participants.
• C) The reporting government provides services primarily to other departments of the same government.
• D) The reporting government provides services below full cost.

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Definitions:

Bullwhip Effect

A phenomenon where inaccurate or distorted information in a supply chain causes overreaction and variability in orders, often leading to inefficiency and excess inventory.

Weighted Total

A calculated total in which different components are given different levels of importance or weight, often used in assessments or decision-making processes.

Lot Size

Refers to the set quantity of items that are processed, ordered, or produced together at a time.

Categories Score

refers to the rating or evaluation assigned to various categories within a framework, often used to assess performance or quality.