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Residual Income question

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Residual Income question

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 14, 2015 at 11:24 am #282294
    Jegan
    Member
    • Topics: 17
    • Replies: 38
    • ☆☆

    Dear ACCA Tutor

    Here’s my residual income question:

    There are two divisions with the following performance for the current year.

    Division X Y
    Investment ($m) 10 30
    Controllable profit 2 3

    Required rate of return 15%

    Calculate the Residual Income of each division.

    November 14, 2015 at 1:57 pm #282320
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51532
    • ☆☆☆☆☆

    If you want me to answer you must ask in the Ask the Tutor Forum – this forum is for students to help each other.

    However for this question you must watch the free lecture on divisional performance where it is explained how to calculate the RI.

    November 14, 2015 at 2:03 pm #282323
    Jegan
    Member
    • Topics: 17
    • Replies: 38
    • ☆☆

    Thank you Sir, appreciate it.

    I will check out the video on RI.

    Jegan

    November 14, 2015 at 2:30 pm #282334
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51532
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
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