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In Addition to Considering Both the Division's Operating Income and Its

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In addition to considering both the division's operating income and its average total assets,residual income incorporates top management's target rate of return.


Definitions:

Psi

Psi stands for pounds per square inch, a unit of pressure used to measure the force exerted per unit area.

Dryer Purge Valve

A component of a vehicle's air brake system, specifically in the air dryer, that releases moisture and contaminants to prevent them from entering the brake system.

Electrical Supply

The provision of electrical power to a device or system, which can be AC (Alternating Current) or DC (Direct Current) sourced from the grid, batteries, or generators.

Thermostat

Any of a number of different types of heat sensing switches; a thermostat usually changes the status of a circuit or system when a specific temperature value is achieved. Found on starters and other electrical components, also used in an engine cooling system where it is used to option coolant circulation to the radiator.

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