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

question 63

Multiple Choice

Suppose Larry's Lariats produces lassos in a factory,and uses nine feet of rope to make each lasso.The rope is put into a machine that automatically cuts it to the right length,then 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 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 would be considered a fixed cost.

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Definitions:

Statistic

A numerical measurement describing some characteristic of a sample, used to estimate the population parameter.

Sample

A smaller group chosen from the larger population for the purpose of gathering statistical data through measurements, observations, or inquiries.

Inferential Statistics

The branch of statistics that focuses on drawing conclusions and making predictions about populations based on samples.

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Athletes who are paid to play baseball at a professional level.