Which of the following observations about the total cost approach is true?
A) It provides quick results, as it excludes all transportation costs.
B) It is an effective approach as it ignores inventory carrying costs.
C) It focuses on direct costs and doesn't consider the possible costs of lost sales.
D) It limits the use of tools of cost accounting and economics.
E) It evaluates each possible physical distribution system and identifies all of the costs of each alternative.

Question

Quizplus · Accepted Answer

The total cost approach involves evaluating each possible PD system and identifying all of the costs of each alternative.

Which of the Following Observations About the Total Cost Approach