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

question 26

Multiple Choice

Muckenfuss 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 Geriatric Medicine. 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.In the first step of the allocation, the amount of Personnel Department cost allocated to the Family Medicine Department is closest to:

• A) $21,604
• B) $24,096
• C) $45,008
• D) $22,500

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Definitions:

Stare Decisis

A legal principle that dictates that courts should follow the precedents set by previous decisions in similar cases to ensure consistency and predictability in the law.

Standing By

The act of remaining ready or available to act or offer help while waiting for further instruction or developments.

Legal Principle

A foundational concept or established rule of law that guides judicial decisions and legal reasoning.

Lower Courts

Courts that have jurisdiction to hear cases of less significance or that are the first level of the court system, also known as inferior courts.