Internal Service Funds Provide Services to Governmental Departments; Therefore They

question 13

True/False

Internal service funds provide services to governmental departments; therefore they are incorporated into the business-type activities category of the government-wide statements.

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Definitions:

Usage Fees

Charges imposed for the use of a good, service, or facility, typically to manage demand or recover costs.

Potentially Efficient

A condition indicating that a system or process could achieve maximum productivity with minimum waste or expense, but hasn't yet done so.

Consumer Surplus

The gap between the amount customers are prepared to spend on a product or service and the amount they end up paying.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive.