To Achieve the Pricing Objective of an Internal Service Fund,which

question 2

Multiple Choice

To achieve the pricing objective of an Internal Service Fund,which measurement focus and basis of accounting must be used?

• A)cash measurement focus and cash basis of accounting
• B)current financial resources measurement focus and full accrual basis of accounting
• C)economic resources measurement focus and modified accrual basis of accounting
• D)economic resources measurement focus and full accrual basis of accounting

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Definitions:

Minimum Wage Law

Legislation that sets the lowest hourly wage rate that employers can legally pay their workers.

Price

The amount of money expected, required, or given in payment for something. It serves as a signal between buyers and sellers in a market.

Labor

The human effort, both physical and mental, used in the production of goods and services.

Substitution Effect

The change in quantity demanded of a good or service as consumers switch to or from substitutes when the price changes.