Lisby, Inc

question 26

Multiple Choice

Lisby, Inc., allocates service department costs to operating departments using the step-down method. The company has two service departments, Administration and Physical Plant, and two operating departments, Assembly and Testing. Data concerning those departments follow:
Administration 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 Testing Department cost after allocations is closest to:

• A) $226,258
• B) $225,800
• C) $211,940
• D) $224,077

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Definitions:

Stimulus Generalization

The psychological phenomenon where a response to a specific stimulus becomes triggered by stimuli that are similar in nature.

Conditioned Response

The learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus through classical conditioning.

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

Extinction

The gradual weakening and eventual disappearance of a conditioned response.