Which of the Following Statements About the Use of ROAM

question 73

Multiple Choice

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

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Definitions:

Drive Pins

Drive pins are fasteners used to secure two parts together, typically installed by driving the pin into a pre-drilled hole to create a secure connection.

Clutch Discs

Clutch discs are components of a clutch assembly in vehicles, made of a friction material that engages and disengages the engine from the drivetrain.

Rollers

Cylindrical components designed to facilitate movement or transfer of materials or objects by rolling them across surfaces.

Clutch Release Forks

Mechanical levers inside a vehicle's transmission that disengage the clutch from the engine, allowing for gear changes.