residual income (RI) definition
A division's operating income after deducting a charge for the cost of the corporation's capital being used by the division.
A division's operating income after deducting a charge for the cost of the corporation's capital being used by the division.
Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com. Read more about the author.