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

question 65

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.The total Geriatric Medicine Department cost after allocations is closest to:

• A) $122,608
• B) $128,781
• C) $128,158
• D) $91,358

---

Definitions:

Day-to-Day Activities

Routine actions or tasks that individuals perform on a regular basis, typically related to personal care or everyday chores.

Perceptual Constancies

The cognitive capacity to perceive objects as having constant shape, size, and color despite changes in perspective, distance, or lighting.

Visual Illusion

A misperception of a real external stimulus, where the way we perceive something visually does not match its physical reality.

Pigments

Substances that give color to biological organisms, objects, or materials by absorbing and reflecting certain wavelengths of light.