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The Hearts and Hands Clinic has two service departments (Human Resources and Information Systems) and two "production" departments (In-patient Treatment and Out-patient Treatment) .The service departments service the "production" departments as well as each other,and studies have shown that Information Systems provides the greater amount of service.Which of the following allocations would not occur if Hearts uses the step-down method of cost allocation?
High Set-up Costs
Initial investments or expenses that are necessary to start a business or manufacturing process, which can act as a barrier to entry for new firms.
Industry
A sector of the economy that produces a specific type of goods or services, characterized by shared production processes or products.
Exclusive Right
A legal provision or agreement granting someone the sole authority to use, sell, or license a product, service, or intellectual property.
Military-industrial Complex
The network of government agencies, armed forces, and private industries involved in the production and supply of military materials and technology.
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