The minimum acceptable divisional operating income is set by top management by establishing a minimum return considered acceptable on invested assets.

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The minimum acceptable divisional operating income is indeed set by top management by establishing a minimum return considered acceptable on invested assets, often referred to as the "hurdle rate" or "required rate of return." This helps ensure that divisions are meeting the company's financial objectives and are efficiently using their assets.

The Minimum Acceptable Divisional Operating Income Is Set by Top