How is residual income calculated?
A) operating income/(ROI × average operating assets)
B) operating income - (ROI × average operating assets)
C) operating income/(minimum rate of return × average operating assets)
D) operating income - (minimum rate of return × average operating assets)

Question

Quizplus · Accepted Answer

Residual income is calculated by subtracting the product of the minimum rate of return and average operating assets from the operating income.

How Is Residual Income Calculated