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:

Upper Limit

The maximum allowable value or level in a given context, beyond which operation is either not recommended or not possible.

Sequencer Instruction

A programming command used within PLC programming to execute a series of instructions in a predefined order.

Binary Information

Data represented in a binary format, consisting of two possible values, often signified as 0 and 1.