Assertion (A): Marginal costing furnishes a better and more logical basis for fixation of sales prices as well as tendering for contracts. Reason (R): Marginal cost provides management with the information regarding the

CS Executive · Cost and Management Accounting · PYQS · June 2018
Assertion (A): Marginal costing furnishes a better and more logical basis for fixation of sales prices as well as tendering for contracts. Reason (R): Marginal cost provides management with the information regarding the behavior of costs and incidence of such cost on the profitability of an undertaking. Select the correct answer from the options given below:
(A) Both A and R are true and R is the correct explanation of A
(B) Both A and R are true but R is not the correct explanation of A
(C) A is true but R is false
(D) A is false but R is true

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Cost and Management Accounting

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