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Commerce · Q991

Costing

Graduate and Post Graduate · Commerce · question 991

Q991

Statement (A): It is necessary to tally current costs with current income in order to find out the correct profit. Reason (R): LIFO ensures matching of current costs with current income.

A.
Both A and R are correct and R is the correct explanation of A
B.
Both A and R are correct but R is not the correct explanation of A
Answer
C.
A is correct but R is incorrect
D.
A is incorrect but R is correct

Answer: Option B

Solution

Answer: Option B
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