221. CSO: 1C3d LOS: 1C3p
Wilcox Industrial has two support departments, the Information Systems Department and
the Personnel Department, and two manufacturing departments, the Machining
Department and the Assembly Department. The support departments service each other
as well as the two production departments. Company studies have shown that the
Personnel Department provides support to a greater number of departments than the
Information Systems Department. If Wilcox uses the step-down method of departmental
allocation, which one of the following cost allocations would not occur? Some of the
costs of the
a. Personnel Department would be allocated to the Information Systems
Department.
b. Information Systems Department would be allocated to the Personnel
c. Personnel Department would be allocated to the Assembly Department.
d. Personnel Department would be allocated to the Assembly Department and the
Machining Department.
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