Which of the following actions would improve future ROAM performance?
A) Increasing selling expenses
B) Reducing inventory levels
C) Increasing accounts receivable
D) Reducing total sales
E) Reducing short-term notes

Question

Quizplus · Accepted Answer

Reducing inventory levels can improve future ROAM performance as it can free up cash flow, decrease carrying costs, and reduce the risk of obsolete inventory. Increasing selling expenses, increasing accounts receivable, reducing total sales, and reducing short-term notes can all have negative impacts on ROAM.

Which of the Following Actions Would Improve Future ROAM Performance