Assertion (A): Implementing an ABC system requires subtantial resources which are costly to maintain. Reason (R): Activity Based Costing is a two-stage product costing. Select the correct answer from the options given be

CS Executive · Cost and Management Accounting · PYQS · December 2017
Assertion (A): Implementing an ABC system requires subtantial resources which are costly to maintain. Reason (R): Activity Based Costing is a two-stage product costing. 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
(A) (A) Both (A) and (R) are true and (R) is the correct explanation of (A)
(B) (B) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(C) (C) (A) is true but (R) is false
(D) (D) (A) is false but (R) is true

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Activity Based Costing (ABC)

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