The "Total Cost Approach" to Physical Distribution Management Involves Evaluating

question 24

True/False

The "total cost approach" to physical distribution management involves evaluating all the costs of alternative physical distribution systems, including transporting, storing, and handling costs.

---

Definitions:

On-costs

Additional costs beyond basic salaries that include items like payroll taxes, superannuation, and workers' compensation.

Direct Labour

The wages paid to workers directly involved in producing goods or providing services.

Indirect Labour

Labor costs associated with tasks that do not directly contribute to the production of goods or services but are necessary for the operation.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including utilities, rent, and salaries of employees not directly involved in production.