The Accountant for Milton, Inc

question 68

Multiple Choice

The accountant for Milton, Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected: If the step-down method is used and maintenance is allocated first, cafeteria costs allocated to packaging will be:

• A) $34,704
• B) $55,757
• C) $28,125
• D) $54,792

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Definitions:

Managed Care Organization

A health insurance company that provides healthcare services to its members through a network of doctors, hospitals, and other healthcare providers.

Health Maintenance

Activities and practices aimed at promoting wellness and preventing disease, through regular check-ups and healthy lifestyle choices.

Voluntarily Enrolled

Choosing to participate in a program or study of one's own free will without coercion.

Medicaid

State medical assistance to people with low incomes, based on Title XIX of the Social Security Act. States receive matching federal funds to provide medical care and services to people meeting categorical and income requirements.