Fresh Farm Produce Co.has examined transportation costs and found that shipping its fruits and vegetables by rail to distant markets would cost them only $89,000,while airfreight would cost $250,000.The costs of the actual fruits and vegetables are the same for each transportation mode.In the context of implementing the total cost approach,what should Fresh Farm Produce do?

Question

Quizplus · Accepted Answer

In selecting a PD system,the total cost approach involves evaluating each possible PD system and identifying all of the costs of each alternative.