Difference between revisions of "Residual income"
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According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | ||
:[[Residual income]] ([[RI]]). Accounting measure of income minus a dollar amount for required return on an accounting measure of investment. | :[[Residual income]] ([[RI]]). Accounting measure of income minus a dollar amount for required return on an accounting measure of investment. | ||
+ | According to [[Managerial Accounting by Braun, Tietz (5th edition)]], | ||
+ | :[[Residual income]] ([[RI]]). Operating income minus the minimum acceptable operating income given the size of the division's assets. | ||
[[Category: Accounting]][[Category:Articles]] | [[Category: Accounting]][[Category:Articles]] |
Latest revision as of 18:38, 16 July 2020
Residual income (RI) is accounting measure of income minus a dollar amount for required return on an accounting measure of investment.
Definitions
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Residual income (RI). Accounting measure of income minus a dollar amount for required return on an accounting measure of investment.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Residual income (RI). Operating income minus the minimum acceptable operating income given the size of the division's assets.