District 1 has a poor level of ROAM. However, their profit contribution percentage is acceptable, but they have a very low asset turnover ratio. What might cause this?
A) Selling too many low-margin products
B) Problems with accounts payable
C) Negotiating low selling prices
D) Problems with accounts receivable
E) Excessive selling expenses

Question

Quizplus · Accepted Answer

Problems with accounts receivable can lead to a low asset turnover ratio.

District 1 Has a Poor Level of ROAM