Residual income is similar to the ________ notion of profit as being the amount left over after all costs, including the cost of the capital employed in the division, are subtracted.
A) accountant's
B) manager's
C) shareholder's
D) economist's

Question

Quizplus · Accepted Answer

Residual income is similar to the economist's notion of profit, which considers the cost of capital employed as part of the total costs that need to be subtracted to determine true profitability.

Residual Income Is Similar to the ________ Notion of Profit