Managerial Accounting

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What is Residual Income: Explain the Computation

MGRACT-KMRRCS

What is an example of Residual Income?

A

Net Income in excess of dividends declared.

B

The cumulative earnings since inception of the business less dividends declared.

C

Profit earned in excess of an amount charged for funds committed to a profit center.

D

A division's profit earned in excess of average return on assets.