Suppose Larry's Lariats Produces Lassos in a Factory, Using Nine

question 101

Multiple Choice

Suppose Larry's Lariats produces lassos in a factory, using nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length and seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. Which of the following expenses would be considered a fixed cost for this company?

• A)Employee wages
• B)The cost of rope
• C)The packaging material
• D)None of these expenses are fixed costs.

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Definitions:

Psychodynamic Therapy

Treatment for psychological disorders where a therapist works with clients to help them gain insight about how their unconscious processes may be causing inner conflict and impairing daily functioning.

Borderline Personality

A psychological condition marked by erratic emotions, actions, and interpersonal connections.

Talk Therapy

A form of psychological therapy that involves discussing one’s feelings, thoughts, and behaviors with a therapist to address mental health issues.

Operant Conditioning

A training approach where behavior intensity is changed by either reinforcement or disciplinary actions.