The excess of divisional operating income over a minimum acceptable amount of divisional operating income is
A)profit margin
B)residual income
C)return on investment (ROI)
D)gross profit

Question

Quizplus · Accepted Answer

Residual income is the amount of operating income that exceeds the minimum acceptable return on a division's operating assets. It's a performance measure used to assess the profitability of a division beyond the minimum required return.

The Excess of Divisional Operating Income Over a Minimum Acceptable