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ROI And Residual income

This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.

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April 16, 2022 at 11:03 am #653430
hermela
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Why we use divisional profit after depreciation which we calculate residual income and ROI?
April 16, 2022 at 2:25 pm #653436
John Moffat
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Because it is an accounting measure and the accounting profit is always after charging depreciation.
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