Identify the rule (rules)that was (were)correctly applied in producing this cladogram

A) Species (groups) pairs that shared most derived characters were shown to branch from a common ancestors at nodes.
B) Derived characters, proposed to have developed after common ancestry, were tallied for each species (group).
C) Nodes and branches interpreted as more recently derived from common ancestors were shown further from the root.
D) All of these rules were correctly used.
E) Coelophysis (at top) was selected as an outgroup representative, sharing all features assumed to be ancestral.