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Commerce · Q852

Costing

Graduate and Post Graduate · Commerce · question 852

Q852

Assertion (A): Only the relevant costs should be taken into consideration for decision-making. Reason (R): All variable costs are relevant costs, and all fixed costs are irrelevant costs.

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

Answer: Option B

Solution

Answer: Option B
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