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.

Name: 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.
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This is true. The minimum rate of return for residual income is set by top management and is typically the same as the hurdle rate used for return on investment.

In Calculating Residual Income, the Minimum Rate of Return Is