Asked by

Karan Jattana
on Nov 12, 2024

verifed

Verified

For the past year, residual income was?

A) $45,000.
B) $30,000.
C) $0.
D) $75,000.

Residual Income

The income that remains after subtracting all requisite costs of capital from operating income, often used to assess divisional or project performance.

Operating Expenses

Operating expenses are the costs associated with running a business’s core operations on a day-to-day basis, excluding the cost of goods sold.

Minimum Required Rate of Return

The minimum return on an investment that is deemed acceptable, based on the risk tolerance of an investor or a company.

  • Understand the concept of residual income and its calculation.
verifed

Verified Answer

KS
Kariya Shien Dela CruzNov 16, 2024
Final Answer:
Get Full Answer