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

question 20

Multiple Choice

Clopton 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 Geriatric Medicine. 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.
-In the first step of the allocation, the amount of Personnel Department cost allocated to the Family Medicine Department is closest to:

• A) $20,285
• B) $17,929
• C) $18,560
• D) $39,774

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Definitions:

Genes

Segments of DNA located on chromosomes that code for proteins, determining the inheritance of physical and some behavioral traits.

Genes

Units of heredity found in all living organisms that carry information for the development, functioning, and reproduction of organisms.

C-Section

A surgical procedure known as cesarean section, used to deliver a baby through an incision in the mother's abdomen and uterus.

Low-Birthweight

Refers to babies born with a weight of less than 2,500 grams (5 pounds, 8 ounces), often associated with developmental or health issues.