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Question

Falcon, Inc. manufactures multiple products in a single facility. Due to recent reported losses, management is

considering the elimination of one of the products produced. Which of the following costs is least likely to be relevant for this decision?

a. Straight-Line depreciation of equipment used to produce the product in question.

b. "Unit-level" material costs to produce the product in question.

c. Packaging costs incurred to distribute the product in question.

d. "Batch-level" setup costs that can be avoided by eliminating the product showing the loss.

e. "Product-level" costs (advertising) related to the product in question.

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