(Appendix 4B) Watts Corporation Has a Custodial Services Department That

question 8

Multiple Choice

(Appendix 4B) Watts Corporation has a Custodial Services Department that services the company's Maintenance Department and its two operating departments. Costs of the Custodial Services Department are allocated to other departments on the basis of square feet of space occupied. The amount of space occupied by each department is given below:
Budgeted costs in the Custodial Services Department total $43,200.
-Suppose the company uses the step-down method of allocation and the costs of the Custodial Services Department are allocated first.The amount of Custodial Services Department cost allocated to the Maintenance Department would be:

• A) $2,592
• B) $2,700
• C) $2,880
• D) $0

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Definitions:

Ethics

The branch of philosophy that deals with moral principles, governing a person's behavior or conducting an activity.

Motivation

The psychological factors that drive a person to action or to pursue goals.

Aristotelian Approach

A philosophical methodology based on the teachings of Aristotle, focusing on the concrete and particular, emphasizing purpose, and considering the ethical implications of actions.

Inherent Human Nature

Fundamental characteristics and instincts common to all humans.