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How does a working capital business entity differ from a reimbursable activity?

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How does a working capital business entity differ from a reimbursable activity?

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Working capital fund business entities and reimbursable activities are similar but there are some fundamental differences. While there can be many permutations of the differences, these are the more general: A reimbursable activity operates as a primary activity within an appropriated fund entity. That is, the primary function of the entity within which the reimbursable activity resides is to perform a function other than the reimbursable activity. The primary (and only) function of a working capital fund business entity is to provide a good/service in exchange for a set price/rate. A working capital fund business entity usually does not receive any other funding other than the fee it charges for the good/service it provides. A reimbursable activity charges the cost it incurred to perform the service. The cost, as a rule, is not known until the service is completed. This does not provide the reimbursable activity with an incentive to control costs nor does it provide the customer &nbsp

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