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Commerce · Q798

Costing

Graduate and Post Graduate · Commerce · question 798

Q798

Assertion (A): From the marginal costing approach point of view, the marginal cost is compared with the purchase price. Reason (R): If the marginal cost is less than the purchase price, it should be purchased rather than manufactured.

A.
Both (A) and (R) are correct
B.
(A) is correct, but (R) is incorrect
Answer
C.
(A) is incorrect, but (R) is correct
D.
Both (A) and (R) are incorrect

Answer: Option B

Solution

Answer: Option B
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