How Is Residual Income Calculated

question 139

Multiple Choice

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)

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Definitions:

Political Power

The capacity to influence, control, or coerce the behavior of individuals, groups, or organizations, often seen within the framework of government and politics.

Duplication

The act of making an exact copy of something; reproduction of a document, data, or material.

Reports

Documents that present and analyze information objectively to inform, update, or make decisions.

Environmental Forces

Environmental Forces refer to external conditions and influences that affect an organization's performance, including political, economic, social, technological, environmental, and legal factors.