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    Managerial Accounting Study Set 14
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    Exam 9: Service Department Allocations
  5. Question
    Assume That the Company Uses the Step-Down Method of Allocation
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Assume That the Company Uses the Step-Down Method of Allocation

Question 7

Question 7

Multiple Choice

Assume that the company uses the step-down method of allocation with Custodial Services allocated first. The amount of cost allocated from the Cafeteria to Custodial Services would be:


A) $0
B) $1,652
C) $1,400
D) $1,514

Correct Answer:

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