Question: Columbus Clinical Services (a multispecialty group practice) has three support departments, Administration, Housekeeping and Finance, and three patient services departments, Medicine, Surgery and Pharmacy. Administration
Columbus Clinical Services (a multispecialty group practice) has three support departments, Administration, Housekeeping and Finance, and three patient services departments, Medicine, Surgery and Pharmacy. Administration provides the most services to other departments followed by Housekeeping and then Finance. The results of a step-down cost allocation for Cherry Community Hospital are presented below:
| Administration Costs Allocated to: |
| Housekeeping$2,000 |
| Finance$1,000 |
| Medicine$4,000 |
| Surgery$5,000 |
| Pharmacy$2,000 |
| Housekeeping Costs Allocated to: |
| Finance$1,000 |
| Medicine$4,500 |
| Surgery$8,000 |
| Pharmacy$2,500 |
| Finance Costs Allocated to: |
| Medicine$7,000 |
| Surgery$9,000 |
| Pharmacy$3,000 |
| $21,000 |
| $17,000 |
| $19,000 |
| $14,000 |
| $16,000 |
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