(Appendix 4B)Assume That the Company Uses the Step-Down Method of Allocating

question 79

Multiple Choice

(Appendix 4B) Assume that the company uses the step-down method of allocating Service Department costs to Operating Departments,and Building and Grounds costs are allocated first.How much Personnel Department cost would be allocated to Operating Department B?

• A) $0.
• B) $107,368.
• C) $107,590.
• D) $112,970.

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Definitions:

Business Ethics

Principles and standards that govern the conduct of individuals and organizations in the business world.

Routine Practices

Established procedures and standards that are followed regularly by organizations or individuals.

Whistleblowing

The act of exposing any kind of information or activity deemed illegal, unethical, or not correct within an organization.

Communication Costs

Expenses associated with the transfer of information, such as telecommunications, mailing, and meetings.