Goods and Services Provided by Internal Service Funds to Other

question 33

Multiple Choice

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.

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Definitions:

Faulty Airbags

Airbag systems in vehicles that have defects which can cause them not to deploy correctly in the event of a crash, potentially leading to injury or death.

Product Crisis

A significant problem or failure with a product that negatively impacts its users and can lead to a loss of trust in the brand.

Litigation Crisis

A crisis driven by a lawsuit (or the threat of one) that plays out in the court of public opinion as well as in the legal system.

Organizational Crisis

A critical event or point of decision that poses a significant threat to a business or institution and requires immediate action to prevent or mitigate damage.