Question

Applying the total cost concept within logistics often means trying to account for intangible costs, such as markdowns or lost sales.

a) True
b) False

Answer 1

Applying the total cost concept within logistics often involves accounting for intangible costs such as markdowns or lost sales.

Step-by-step explanation:

The statement is true. Applying the total cost concept within logistics often involves accounting for intangible costs such as markdowns or lost sales. Total cost includes all the costs incurred by a firm in producing and selling its products. This includes both tangible costs, such as material and labor costs, as well as intangible costs, such as lost sales due to markdowns or damaged goods. By considering these intangible costs, firms can have a more accurate understanding of their overall costs and make better decisions in their logistics operations.