The income that is earned above the specified minimum level of return is referred to as
A)EVA.
B)residual income.
C)segment income.
D)operating income.

Question

Quizplus · Accepted Answer

Residual income refers to the income that is earned above the specified minimum level of return. EVA (Economic Value Added) refers to the difference between the cost of capital and the earned rate of return, segment income refers to the income earned in a specific segment or division, and operating income refers to the income earned from regular business operations.

The Income That Is Earned Above the Specified Minimum Level