Which of the Following Should Be Accounted for in an Internal

question 23

Multiple Choice

Which of the following should be accounted for in an internal service fund? Light poles to be paid for in installments by
Affected property owners $350,000
Van used to transport supplies to all city
Departments on a cost reimbursement basis 65,000
Equipment used for supplying electric power
To residents 1,250,000

• A) $ 65,000.
• B) $ 415,000.
• C) $1,250,000.
• D) $1,315,000.

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for more precise cost control.

Food And Supplies

These are consumable items bought and used in the operations of businesses, particularly in the restaurant and hospitality industries.

Tenant-Days

A measure used in property management representing the sum total of days each tenant occupies a space over a certain period.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular item or category.