Enzor Surgical Hospital Uses the Direct Method to Allocate Service

question 17

Multiple Choice

Enzor Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, Information Technology and Administration, and two operating departments, Surgery and Recovery. Information Technology Department costs are allocated on the basis of computer workstations and Administration Department costs are allocated on the basis of employees.
-The total amount of Information Technology Department cost allocated to the two operating departments is closest to:

• A)$23,841
• B)$29,414
• C)$113,244
• D)$19,695

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Definitions:

Criterion Validity

The extent to which a measure is related to an outcome, assessing whether the measure under consideration actually measures what it purports to measure.

Reliability

The degree to which an assessment tool produces stable and consistent results over multiple administrations or observations.

Psychological Test

A standardized measure of a sample of behavior used to assess psychological constructs such as cognitive abilities, personality traits, or emotional states.

Consistency

The quality of always behaving or performing in a similar way, or of always producing the same results.