Bankert Corporation Uses the Step-Down Method to Allocate Service Department

question 42

Multiple Choice

Bankert Corporation uses the step-down method to allocate service department costs to operating departments.The company has two service departments,General Management and Physical Plant,and two operating departments,Sales and After-Sales.Data concerning those departments follow: General Management Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied.The total After-Sales Department cost after allocations is closest to:

• A)$307,594
• B)$300,100
• C)$310,240
• D)$310,376

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Definitions:

Integration

The act of combining or coordinating separate elements or units into a more cohesive and effective whole.

Executive Team

A group of top-level managers and executives who work together to develop and implement strategic plans for an organization.

Middle Management

Managers who serve as an intermediary between senior management and operational staff, often responsible for translating strategic objectives into actionable plans.

Top Executives

Individuals who hold the highest-level management positions in an organization, responsible for developing strategies and policies to achieve organizational goals.