According to Lawrence and Lorsch,an Organization That Can Be Classified

question 107

Multiple Choice

According to Lawrence and Lorsch,an organization that can be classified according to differentiation would have a ____ level of differentiation if it had many subunits and would have a ____ level of differentiation if it had few subunits.

• A)low; low
• B)low; high
• C)high; low
• D)high; high
• E)None of these.

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Definitions:

Unfavorable

A term describing outcomes that are worse than expected or budgeted, often used in financial and operational analysis.

Favorable

A term used in financial analysis to indicate that actual performance is better than expected or budgeted performance.

Overapplied

A situation where the overhead applied to products is greater than the actual overhead incurred.

Underapplied

Refers to a situation where the actual manufacturing overhead costs are higher than the overhead costs allocated to products during a specific period.