Soprano Industries Follows a Chain of Command with Authority Moving

question 287

True/False

Soprano Industries follows a chain of command with authority moving from the top of the hierarchy down to lower-level managers. The company is organized by department with established rules and regulations that everyone is expected to follow. These characteristics suggest that Soprano Industries is an example of a bureaucratic organization.

---

Definitions:

Static Planning Budget

A budget based on a fixed level of activity, not adjusted for actual activity levels.

Customers Served

The number of individual customers or clients that a business has provided goods or services to during a specific period.

Total Expenses

Represents the sum of all costs and expenses incurred by a business in a specific period, including both operational and non-operational items.

Spending Variance

The difference between the amount budgeted for spending and the actual amount spent, which can indicate over or underperformance against the budget.