What category of WCF is primarily financed by reimbursements from customers' appropriated accounts?

Prepare for the Certified Defense Financial Manager Exam 1. Study with flashcards and multiple choice questions. Each question includes hints and explanations to boost your knowledge. Ace your exam with confidence!

Multiple Choice

What category of WCF is primarily financed by reimbursements from customers' appropriated accounts?

Explanation:
The Defense Working Capital Fund is designed to be self-sustaining by recovering its costs through charges to customers’ appropriations. This approach applies to both sub-funds: the Stock Fund, which handles inventory and related sales to DoD customers, and the Industrial Fund, which provides manufacturing and industrial-type services. In both cases, the funds set prices and bill customers so that reimbursements from their appropriation accounts cover material costs, labor, overhead, and other operating expenses. Therefore, both stock and industrial are financed primarily by reimbursements from customers’ appropriations.

The Defense Working Capital Fund is designed to be self-sustaining by recovering its costs through charges to customers’ appropriations. This approach applies to both sub-funds: the Stock Fund, which handles inventory and related sales to DoD customers, and the Industrial Fund, which provides manufacturing and industrial-type services. In both cases, the funds set prices and bill customers so that reimbursements from their appropriation accounts cover material costs, labor, overhead, and other operating expenses. Therefore, both stock and industrial are financed primarily by reimbursements from customers’ appropriations.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy