Wilcox Industrial Has Two Support Departments, the Information Systems Department

Multiple Choice

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 Department.
C) Personnel Department would be allocated to the Assembly Department.
D) Personnel Department would be allocated to the Assembly Department and the Machining Department.