State Hospital has two service departments (Patient Records and Accounting) and two "production" departments (Internal Medicine and Surgery). Which of the following allocations would not take place under the reciprocal-services method of cost allocation?
A. Allocation of Patient Records cost to Internal Medicine.
B. Allocation of Internal Medicine cost to Surgery.
C. Allocation of Accounting cost to Patient Records.
D. Allocation of Surgery cost to Accounting.
E. Both Allocation of Surgery cost to Accounting and Allocation of Internal Medicine cost to Surgery.
Answer: E
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