Solved

What Is Residual Income and How Is It Computed? Is

Question 128

Essay

What is residual income and how is it computed? Is it better for residual income to be high or low?
Residual income (RI) is another alternative return on investment (ROI) that can be used to measure a segment's performance. It is the amount of income earned in excess of a predetermined minimum rate of return on assets.

Correct Answer:

verifed

Verified

The exact formula is as follow...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents