Abstract This article discusses the problems in determining total cost of distribution. It is not the purpose of this paper to discuss a functional comparison of costs within one institution, such as a wholesale grocery house. Neither is any attempt made to compare the costs between two or more institutions operating at the same level in a particular trade; for example, clothing chains. Because of the limitation of time, neither will it be possible to do much more than point out the objectives, methods, and problem connected with total distribution cost analysis. The solution will have to wait upon the further study and experimentation of accountants and marketing men. Many people fail to realize that distribution costs, such as those for transportation, storage, financing, and selling, are incurred long before a product is ready for final processing. A number of the best known marketing institutions handle raw materials and semi-processed goods prior to final manufacture. A study of the accompanying bar charts, however, discloses the fact that distribution costs start with the selling costs of the manufacturer and do not include an additional seven cents, classified as elevator margin and transportation from the producer through the elevator to the manufacturer.