Residual income is the amount of an investment center's profit that remains after subtracting an imputed interest charge.

Name: Residual income is the amount of an investment center's profit that remains after subtracting an imputed interest charge.
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Residual income is calculated by subtracting an imputed interest charge on invested capital from the operating income generated by an investment center, representing the net income after considering the cost of capital.

Residual Income Is the Amount of an Investment Center's Profit