Reference: 22_08 -Fred Smith and Joe Barney Are Managers of Two Product

question 40

Multiple Choice

Reference: 22_08
$\begin{array}{lrr}\text { Quarry Co.}&\text { Smith}&\text { Barney}\\\text { Revenue } & \$ 412,000 & \$ 450,000 \\\text { Costs } & 380,000 & 411,000 \\\text { Average assets } & 400,000 & 600,000\end{array}$

-Fred Smith and Joe Barney are managers of two product lines for Quarry Company.One of them is a candidate for promotion based on performance.Using the data above,which of the following is a true statement?

• A) Smith is outperforming Barney as measured by return on investment center assets.
• B) Barney is outperforming Smith as measured by return on investment center assets.
• C) The return in investment center assets is the same for both
• D) If target performance is a 7% return on assets, both investment centers are performing above the target level.
• E) If target performance is a 7% return on assets, the residual income for both centers is positive.

---

Definitions:

Jewish

Relating to, associated with, or denoting Jews, a monotheistic, ethnoreligious group originating from the Israelites or Hebrews of ancient Middle East.

Introversion

A personality trait characterized by a preference for solitary activities and inner thoughts over external stimulation and social interaction.

Extraversion

A personality trait characterized by outgoingness, high energy, and enjoyment in social situations.

Dominant Attitude

The prevailing or most influential set of beliefs, feelings, or way of thinking in a particular individual or group.