Final answer:
The statement is true; non-severable services cannot be divided into increments that are useful on their own without compromising their integrity or purpose, requiring full funding upfront.
Step-by-step explanation:
Non-severable services are services that cannot be separated into increments without losing their value, meaning they must be performed continuously to meet a government's needs. Therefore, the statement that 'Non-severable services are those that cannot be separated into increments that will provide something useful at the end of the fiscal year.' is true. Non-severable services are typically funded by the federal government in full at the point of the contract award, ensuring that they can be provided through the end of the fiscal year without interruption. This contrasts with severable services, which can be divided and funded in parts.