Which of the Following Statements About the Use of ROAM

question 38

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:

Revenues And Expenses

The income earned from normal business operations and the costs incurred to generate that income, respectively, within a specific period.

Translated Value

The value of a foreign asset, liability, or transaction expressed in the currency of another country after conversion using the appropriate exchange rate.

Functional Currency

The main form of money in the principal economic setting where a business functions and produces cash flows.

Currency Exchange Rates

Exchange rates for currencies dictate how much one currency can be swapped for another, affecting international commerce and investment.