Suppose Bev's Bags Makes Large and Small Handbags

question 92

Multiple Choice

Suppose Bev's Bags makes large and small handbags. Bev rents an industrial space where she keeps the company's fabric, industrial sewing machine, measuring board, cutting shears, extra needles, thread, buttons, and labels. Bev can produce three bags an hour, regardless of the size of the bag. Which of the following would be considered a variable cost?

• A)The rent Bev pays
• B)The fabric
• C)The cutting shears
• D)None of these are variable costs.

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Definitions:

Experimental Protocol

A systematic plan followed in a scientific research or study.

Random Sample

A subset of individuals chosen from a larger set (population) where each individual has an equal chance of being selected, allowing for unbiased statistical analysis.

Negative Correlation

A statistical relationship between two variables where if one variable increases, the other decreases, and vice versa.

Time Spent Fishing

The duration allocated or utilized in the act of catching fish either for leisure or commercial purposes.