Use the Following Information for the Next 8 Questions

question 27

Multiple Choice

Use the following information for the next 8 questions.
HGT Corporation produces four products from a common production process. Selected data from HGT's accounting system for the four products appears below: Joint costs for the accounting period totaled $5,000. Each product line has a different product manager, who is evaluated based on product line profitability. Therefore, each manager is motivated to reduce his / her total product line costs as much as possible. The managers have been given information about potential joint cost allocations using the following three methods: physical output, sales at split-off point, and net realizable value. The managers are comparing the joint cost allocations under each method so that they can give the accountant input about their preferred method(s) .
-Which product line would receive the least amount of joint cost under the net realizable value method?

• A) Floor cushions and full-body pillows
• B) Full-body pillows
• C) Sofa cushions
• D) None of the above

---

Definitions:

Dependent Variables

The outcome factors in an experiment that are expected to change as a result of experimental manipulations.

Factorial Design

An experimental design used to explore the effects of two or more variables across multiple levels of each.

Factorial Design

An experimental strategy that involves manipulating more than one independent variable to determine their separate and combined effects on a dependent variable.

Independent Variables

Variables in an experiment that are manipulated or changed to observe their effects on dependent variables.