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Residual Income

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Residual Income

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 26, 2020 at 4:32 pm #582183
    Avatarakhila.vijay93
    Participant
    • Topics: 41
    • Replies: 43
    • ☆☆

    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?

    August 27, 2020 at 7:21 am #582246
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54846
    • ☆☆☆☆☆

    Yes, because they are not controllable by the divisional manager.

    August 27, 2020 at 4:01 pm #582353
    Avatarakhila.vijay93
    Participant
    • Topics: 41
    • Replies: 43
    • ☆☆

    Thank you John 🙂

    August 27, 2020 at 6:02 pm #582371
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54846
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Residual Income’ is closed to new replies.

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