Reddicks Clinic Uses the Step-Down Method to Allocate Service Department

question 284

Multiple Choice

Reddicks Clinic uses the step-down method to allocate service department costs to operating departments. The clinic has two service departments, Personnel and Information Technology (IT) , and two operating departments, Family Medicine and Pediatrics. Data concerning those departments follow: Personnel costs are allocated first on the basis of employees and Information Technology costs are allocated second on the basis of Personnel costs. The total Pediatrics Department cost after allocations is closest to:

• A) $345,462
• B) $393,099
• C) $392,838
• D) $383,307

---

Definitions:

HIV-Infected

Being positive for the Human Immunodeficiency Virus, which attacks the body's immune system and can lead to AIDS if not treated.

Cesarean Delivery

A surgical procedure used to deliver a baby through incisions in the abdomen and uterus, often employed when vaginal delivery would pose a risk to the mother or child.

Transmitting HIV

The process by which the Human Immunodeficiency Virus is passed from one individual to another, typically through blood, sexual contact, or from mother to child during childbirth or breastfeeding.

Hypnobirthing

A childbirth method that uses self-hypnosis and relaxation techniques to help reduce pain and anxiety during labor.