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Residual Income

AAkhila5y ago
Dear John If a division has overheads which are allocated head office expenses, while computing the residual income are we supposed to add it back to the profit?
John MoffatJohn MoffatTutor5y ago#1
Yes, because they are not controllable by the divisional manager.
AAkhila5y ago#2
Thank you John :)
John MoffatJohn MoffatTutor5y ago#3
You are welcome :-)
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