Which of the following statements about the use of ROAM (return on assets managed) is true?
A) ROAM is a highly subjective measure
B) The goal of ROAM is to reach an optimal level of investment
C) Sales managers have eagerly adopted ROAM as a measure of effectiveness
D) ROAM is calculated using contribution margin and asset liquidity
E) ROAM cannot be used as a control device

Question

Quizplus · Accepted Answer

The goal of ROAM is to reach an optimal level of investment. ROAM is not highly subjective, and it is not calculated using contribution margin and asset liquidity. While some sales managers may use ROAM as a measure of effectiveness, it is not a widely adopted control device.

Which of the Following Statements About the Use of ROAM