The Reed Division Reports the Following Operating Data for the Past

question 26

Multiple Choice

The Reed Division reports the following operating data for the past two years: The return on investment at Reed was exactly the same in Year 1 and Year 2.
-Average operating assets in Year 1 were:

• A)$160,000
• B)$150,000
• C)$125,000
• D)$100,000

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Definitions:

Clustering

The method of categorizing a collection of items so that those within the same category are more alike to each other than they are to items in different categories.

Preferred Provider Organization

Preferred Provider Organization (PPO) is a type of health insurance plan that offers a network of healthcare providers, allowing policyholders to receive services at a discounted rate.

Health Maintenance Organization

A type of health insurance plan that typically restricts patients to a network of doctors and hospitals in order to control costs.

Exclusive Provider Organization

A managed care plan where services are covered only if you use doctors, specialists, or hospitals in the plan’s network, except in an emergency.