Kolinski Surgical Hospital Uses the Direct Method to Allocate Service

question 39

Multiple Choice

Kolinski Surgical Hospital uses the direct method to allocate service department costs to operating departments.The hospital has two service departments,Telecommunications and Administration,and two operating departments,Surgery and Recovery. Telecommunications Department costs are allocated on the basis of the number of telecommunications ports in departments and Administration Department costs are allocated on the basis of employees.The total Surgery Department cost after service department allocations is closest to:

• A) $317,118
• B) $314,853
• C) $310,244
• D) $305,921

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Definitions:

Drive-Reduction Theory

A psychological concept suggesting that motivation arises from biological needs that push organisms to seek homeostasis through reducing drives stemming from those needs.

Tension

The physical or emotional strain caused by conflicting or demanding circumstances.

Stability

The condition of being resistant to change or variation, often used in psychological contexts to refer to emotional or mental consistency.

Primary Drives

Basic, instinctual drives that motivate behaviors necessary for survival, such as hunger, thirst, and avoidance of pain.