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Which of the following is the correct formula for calculating residual income?
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Which of the following is the correct formula for calculating residual income?
Which of the following is the correct formula for calculating residual income?
A) Operating income / Average assets
B) Operating income - Minimum acceptable operating income
C) Historical cost of assets - Accumulated depreciation
D) Weighted average cost of capital - Net operating profit after tax
Textbook
Horngren's Financial & Managerial Accounting, The Financial Chapters
Edition:
5
th
Authors:
Miller-Nobles, Mattison, Matsumura
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