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

question 12

Multiple Choice

Diprima 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 Pediatric.Data concerning those departments follow: Personnel costs are allocated first on the basis of employees and IT costs are allocated second on the basis of PCs.The total Pediatric Department cost after allocations is closest to:

• A)$233,732
• B)$238,715
• C)$238,298
• D)$205,318

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Definitions:

Particular Needs

Specific requirements or desires of an individual that vary depending on personal circumstances or contexts.

Needs for Competence

The intrinsic motivation that drives individuals to seek out challenges and opportunities to enhance their skills and abilities.

Autonomy

The capacity to make an informed, uncoerced decision; in psychology, it often relates to the sense of control or agency over one's actions and life.

Relatedness

The feeling of being connected or related to others, which is essential for fostering social bonds and personal relationships.