Use the Following Information for the Next 8 Questions

question 3

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 physical output method?

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

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Definitions:

Elaboration Likelihood Model

A theory in social psychology that describes the process through which attitudes are formed and changed, depending on the degree of thought an individual gives to persuasive messages.

Theory of Persuasion

A systematic framework for understanding how people are persuaded, encompassing various models and approaches that explain the mechanisms and factors influencing the persuasion process.

Routes

Paths or directions followed or taken to reach a destination, often considered in the context of navigation or travel.

Persuasion

The action or process of influencing someone's beliefs, attitudes, or behaviors through argument, reasoning, or appeal.