Examlex
The three primary inventory accounts in a manufacturing company are
Residual Income
The income that remains after subtracting all required costs of capital from operating income.
Average Operating Assets
The average value of the assets used in the normal operation of a business to generate revenue, calculated typically over a fiscal year.
Net Operating Income
A measure of a company's profitability by subtracting operating expenses from its operating revenues.
Minimum Required Rate
The lowest return on investment deemed acceptable by an investor or manager, often used in capital budgeting to evaluate potential projects.
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