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residual income (RI)

(Dictionary)

Author:
Harold Averkamp, CPA, MBA

Definition

A division’s operating income after deducting a charge for the cost of the corporation’s capital being used by the division.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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