In order to conform to GASB standards, goods and services provided by internal service funds to other departments of the government must be priced to
A)Cover variable costs only
B)Cover full costs (both fixed and variable)
C)Cover full costs, plus an additional charge to cover inflation and anticipated needs for expansion.
D)None of the above. Each government determines its own operating and pricing policies, which may includes subsidizing the cost of operating an internal service fund.
choose one correct answer and show me why ?