Hayes Division, Which Is Located in a Remote Area in Northern

question 30

Multiple Choice

Hayes Division, which is located in a remote area in Northern Ontario, has been stagnant over the past five years, neither growing nor contracting in size and profitability. Investments in new property, plant, and equipment have been minimal. Would the division's use of total assets (valued at net book value) when measuring ROI result in (1) using numbers that are consistent with those on the balance sheet and (2) a rising ROI over time? $\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Consistent with Numbers } \\\text { on the Balance Sheet? }\end{array} & \begin{array} { c } \text { Produce a Rising Return on } \\\text { Investment Over Time? }\end{array} \\\hline 1 & \text { Yes } & \text { Yes } \\\hline 2 & \text { Yes } & \text { No } \\\hline 3 & \text { No } & \text { Yes } \\\hline 4 & \text { No } & \text { No } \\\hline 5 & \text { Yes } & \text { Need more information to judge } \\\hline\end{array}$

• A)1
• B)2
• C)3
• D)4
• E)5

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Definitions:

Information Processing Capabilities

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Working Memory

A cognitive system responsible for temporarily holding and processing information, enabling activities such as reasoning, learning, and comprehension.

Rehearsal

The process of repeating to oneself the material that one is trying to remember.

Memory Organization

The way in which memories are structured, stored, and retrieved in the brain, often influencing how information is recalled.