(Solved): Residual income is the income that remains after subtracting controllable costs from controllable m ...

Residual income is the income that remains after subtracting controllable costs from controllable margin. tells management what percentage return was generated by the particular division being evaluated. generates a dollar amount which represents the increase in value to the company beyond the cost necessary to pay for the financing of assets. is different to economic value added as it is a measure of the income created by the investment centre above the cost of invested assets.