Which of the following is an appropriate cost driver for electricity used for production equipment in a factory? Multiple Choice O Machine hours O Number of inspections O Setup hours Number of units Which of the following statements is false regarding upstream and downstream costs? Multiple Choice Both upstream and downstream costs are unnecessary and should be minimized, if not eliminated. O. Upstream costs occur before and downstream costs occur after goods are manufactured. o Product design is an example of an upstream cost. Customer service is an example of a downstream cost. Which of the following costs is the result of a facility-level activity? Multiple Choice o Utility costs related to heating and lighting a manufacturing facility The cost of landscaping the grounds for the manufacturing unit C Costs associated with trademarks Both utility costs related to heating and lighting a manufacturing facility and the cost of landscaping the grounds for the manufacturing unit are correct The Tangier Company is considering eliminating the following product line: Product AXP $53,000 Sales Less variable costs: Raw materials Direct labor Contribution margin Less fixed costs: Production costs allocated to products Profit (Loss) 31,500 10,200 $11,300 17,600 $(6,300) What amount of cost is avoidable if Tangier outsources production of this product? Multiple Choice O $59,300 $6,300 O $41,700 O O O $35,400