Which of the Following Observations About the Total Cost Approach

question 116

Multiple Choice

Which of the following observations about the total cost approach is NOT true?

• A) Includes transportation costs.
• B) Helps find the lowest total cost for the right service level.
• C) Focuses on direct costs and doesn't consider the possible costs of lost sales.
• D) Uses the tools of cost accounting and economics.
• E) Involves evaluating each possible physical distribution system and identifying all of the costs of each alternative.

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Definitions:

Retinal Disparity

The slight difference in visual perception that comes from the images projected on the retinae of the eyes, which is a cue to depth perception.

Depth Perception

The ability to perceive the world in three dimensions and judge the distance of an object.

Convergence

The process or state of converging, in various contexts such as the meeting of two or more lines or paths at a point, or the evolution of similar features in independent species.

Parallel Processing

The ability of the brain to simultaneously process incoming stimuli of differing quality, a key feature of neural network functioning.