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From course:

Management accounting 2022

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Question:

What is residual income? And how is it calculated?

Author: Hjalmer Pedersen


Answer:

Residual income is the net operating income that is earned by the investment center. Residual income is the excess income earned on the return on investment. It is regularly referred to as "passive income" for individuals or businesses.


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Residual income is the net operating income that is earned by the investment center. Residual income is the excess income earned on the return on investment. It is regularly referred to as "passive income" for individuals or businesses.
1 answer(s) in total

Author

Hjalmer Pedersen
Hjalmer Pedersen