The term decentralized organization refers to an organization that delegates decision-making and operational responsibilities to managers of each segment of the organization. True False The cost-plus approach is the best approach for establishing transfer prices for all companies. True False All of the following are false about transfer pricing except: using negotiated transfer pricing is always the best approach. the cost approach can base the transfer price on either the variable cost or full absorption cost. using the cost approach is always the best approach. companies should always use the selling division's variable cost as the transfer price. Residual income is the dollar amount of division operating profit in excess of the division's cost of acquiring capital to purchase operating assets. True False Which of the following statements is true regarding the use of the operating profit margin as a performance measure? It includes the assets that produced the income. It ignores the assets that produced the income. It is calculated as net income divided by sales. It is calculated as sales divided by operating income. Dillon requires a minimum return on its investments of 25%. Dillon Company has the following information available for one of its divisions: Average operating assets $4,000,000 Sales $4, 800,000 Return on investment (ROI) 30% Based on this information, what is the division's asset turnover (rounded to two decimal places)? 2.78 4.00 0.83 1.20