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Christopher Austin
on Nov 12, 2024

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The excess of divisional income from operations over a minimum acceptable income from operations is termed the residual income.

Residual Income

The amount of income that remains after all personal debts and expenses have been paid.

Minimum Acceptable

The lowest level or standard that is satisfactory or allowable.

Income From Operations

Represents the profit from a company's core business operations, excluding deductions of interest and taxes.

  • Identify the notion of residual income used as a benchmark for performance and the formula for its computation.
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Anjel RankinNov 17, 2024
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