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Commerce · Q825

Costing

Graduate and Post Graduate · Commerce · question 825

Q825

From the following two statements of Assertion (A) and Reason (R). Indicate the correct option. 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 not correct
Answer
C.
(A) is not correct, but (R) is correct
D.
Both (A) and (R) are incorrect

Answer: Option B

Solution

Answer: Option B
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