Which of the Following Observations About the Total Cost Approach

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.