Which of the Following Observations About the Total Cost Approach

question 170

Multiple Choice

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.