(Appendix 4B)If personnel department expenses are allocated on the basis of the number of employees in various departments,then the number of employees in the personnel department itself must be included in the allocation base when the step-down method is used.

Question

Quizplus · Accepted Answer

When using the step-down method, the expenses of the personnel department would have already been allocated to other departments before considering the allocation base. Therefore, the number of employees in the personnel department itself should not be included in the allocation base.

(Appendix 4B)If Personnel Department Expenses Are Allocated on the Basis