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This question belongs to Commerce Costing

Costing

?

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 C) (A) is not correct, but (R) is correct D) Both (A) and (R) are incorrect

Answer & Solution

Correct Answer: Option B

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Question posted by Examveda

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