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

question 135

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 variable cost for this company?

• A) The cost of the factory
• B) Employee wages
• C) The rope-cutting machine
• D) All of these expenses would be included in variable costs.

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Definitions:

Austria-Hungary

Austria-Hungary, also known as the Austro-Hungarian Empire, was a dual monarchy in Central Europe from 1867 to 1918, composed of the Austrian Empire and the Kingdom of Hungary.

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A sequence of political and military events in the early 20th century that escalated tensions among the Great Powers and contributed to the outbreak of World War I.

Adriatic

A body of water separating the Italian Peninsula from the Balkan Peninsula, and the Adriatic Sea is known for its deep blue waters and historic coastal communities.

Francis Ferdinand

Archduke of Austria-Este whose assassination in Sarajevo in 1914 sparked the beginning of World War I.