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

question 20

Multiple Choice

Prophit 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 Pediatrics. 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 Pediatrics Department cost after allocations is closest to:

• A)$231,638
• B)$223,132
• C)$232,286
• D)$182,936

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Definitions:

Pneumothorax

The presence of air in the pleural space causing the lung to collapse, leading to chest pain and breathing difficulty.

Emphysema

A chronic respiratory disease characterized by the destruction of air sacs in the lungs, leading to difficulty breathing.

Chest Tube Drainage

A procedure where a tube is inserted into the chest to remove air, fluid, or pus from the pleural space to aid breathing.

Nursing Assistive Personnel

Health care workers who provide basic patient care under the supervision of nursing staff, such as Certified Nursing Assistants.