The Minimum Amount of Desired Divisional Operating Income Is Set

question 131

True/False

The minimum amount of desired divisional operating income is set by top management by establishing a minimum rate of return considered acceptable for invested assets.

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Definitions:

Inability

The state of being unable to perform a function or action due to physical or mental limitations.

Recall

The mental process of retrieving information from the past.

Primacy Effect

The tendency to remember information at the beginning of a list better than information in the middle or at the end.

Recency Effect

A cognitive bias that inclines individuals to remember and give greater importance to the most recent information or experiences.