Residual Income Definition
Residual Income Definition:
The net operating income that an investment center earns above the required return on its operating assets.
Other Related Accounting Articles:
- Return on Investment (ROI) Definition
- Residual Income
- Simple Rate of Return Definition
- Positive Financial Leverage Definition
- Negative Financial Leverage Definition
- Investment Center Definition
- Margin Definition
- Annual Return over an Investment
- Required Rate of Return Definition
- Responsibility Center Definition
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