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In calculating residual income, the minimum rate of return is set by top management and is the same as the hurdle rate used for return

In calculating residual income, the minimum rate of return is set by top management and is the same as the hurdle rate used for return on investment.

A. True

B. False

In negotiated transfer pricing, the buying division sets the ceiling (maximum possible transfer price) for the bargaining range.

A. True

B. False

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