The Wilson Manufacturing Company Uses the Step-Down Method for Allocating

question 18

Multiple Choice

The Wilson Manufacturing Company uses the step-down method for allocating support costs and the company has three support departments, Maintenance, Human Resources, and Cafeteria. Assuming that the company allocates costs in that same order, the costs allocated from the cafeteria to line departments and final projects will include:

• A) Maintenance, cafeteria and human resource costs
• B) Only cafeteria costs
• C) Only cafeteria and human resource costs
• D) Only human resource and maintenance costs

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