"User Charges for Services Rendered by an Activity Accounted for by a Proprietary

question 33

Essay

"User charges for services rendered by an activity accounted for by a proprietary fund should cover indirect costs as well as direct costs.Further,user charges must be set before the service is rendered (which means before either direct costs or indirect costs are known)." Assuming that both these statements are true,explain how you would proceed to set user charges for an activity accounted for by a proprietary fund.

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Definitions:

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