The Metropolitan Clinic has two service departments (S1 and S2)and two "production" departments (P1 and P2).The service departments service the "production" departments as well as each other,and studies have shown that S2 provides the greater amount of service.Which of the following choices correctly denotes an allocation that would not occur under (1)the direct method and (2)the step-down method of cost allocation?
A)Choice A
B)Choice B
C)Choice C
D)Choice D
E)Choice E

Question

The Metropolitan Clinic has two service departments (S1 and S2)and two "production" departments (P1 and P2).The service departments service the "production" departments as well as each other,and studies have shown that S2 provides the greater amount of service.Which of the following choices correctly denotes an allocation that would not occur under (1)the direct method and (2)the step-down method of cost allocation? 
A)Choice A 
B)Choice B 
C)Choice C 
D)Choice D 
E)Choice E

Quizplus · Accepted Answer

The Answer is E

The Metropolitan Clinic Has Two Service Departments (S1 and S2)and