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

question 155

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) $23,920
• B) $58,405
• C) $23,049
• D) $26,366

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Definitions:

Rational-Emotive Therapists

Therapists who apply the principles of rational-emotive therapy, which aims to resolve emotional and behavioral problems by confronting irrational beliefs.

Thoughts And Beliefs

Mental states or convictions held about oneself, others, or the world, whether true or false.

Classical Conditioning

Education that comes from associating an external environmental stimulus with a naturally present one.

Bed-Wetting

Involuntary urination while asleep, especially common in children and sometimes referred to as nocturnal enuresis.