Residual income is similar to the _________ notion of profit as being the amount left over after all costs,including the cost of the capital employed in the division,are subtracted.
A)accountants'
B)manager's
C)shareholder's
D)economist's
E)financial analyst's

Question

Quizplus · Accepted Answer

The notion of residual income is commonly used in economics to refer to the profit that remains after all expenses, including the cost of capital, have been deducted. This concept is important to economists because it reflects the true economic profit of the project or investment, after all costs have been taken into account. While residual income may also be relevant to accountants, managers, shareholders, and financial analysts, it is primarily an economic concept.

Residual Income Is Similar to the _________ Notion of Profit