Answer
The residual income is...
Work Step by Step
The residual income is the net operating income that investment centers profit above the minimum required return on operating assets.
Managerial Accounting (15th Edition)
by Garrison, Ray; Noreen, Eric, Brewer, Peter
Published by
McGraw-Hill Education
ISBN 10:
007802563X
ISBN 13:
978-0-07802-563-1
Chapter 11 - Performance Measurement in Decentralized Organizations - Questions - Page 497: 11-5
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