Residual Income (RI) Is

question 69

Multiple Choice

Residual income (RI) is:

• A) Contribution margin of an investment center, less the imputed interest on the invested capital used by the center.
• B) Operating income of an investment center divided by average total assets.
• C) Another name for Economic Value Added (EVA®)
• D) Operating income of an investment center, less the imputed interest on the capital used by the center.
• E) Operating income of an investment center, plus the imputed interest on the capital used by the center.

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Definitions:

Quotas

Limits set by governments on the quantity of a product that can be imported or exported within a given time period.

International Trade

The exchange of goods, services, and capital between countries across international borders.

Economic Growth

An increase in the production and consumption of goods and services, reflecting an improvement in a country's economy over time, typically measured by GDP.

Tariff Rates

The taxes imposed by a government on imported or, less commonly, exported goods, often used to protect domestic industries or to generate revenue.