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.

---

Definitions:

Cooperative Behaviour

Behavior exhibited by individuals or entities working together towards a common goal or benefit, often involving teamwork or partnerships.

Frustration-Aggression Hypothesis

A psychological theory suggesting that frustration leads to aggressive behavior as a way of coping with the inability to achieve a goal.

Social Identity Theory

A theory positing that individuals classify themselves and others into various social categories, like gender, race, and occupation, which influences their behaviors and attitudes.

Altruism

A special form of helping behavior, sometimes costly, that shows concern for fellow human beings and is performed without expectation of personal gain.