Assertion (A) : Process costing method is useful in the manufacturing of products like steel, paper, medicines, soaps, chemical etc.
Reason (R) : Process costing is a method of costing used in industries where the material has to pass through two or more processes for being converted into a final product.
In the light of the above statements, choose the most appropriate answer from the options given below :
Assertion (A) Analysis: Process Costing Utility
The assertion states that process costing is useful for mass-produced, standardized items like steel, paper, medicines, soaps, and chemicals. This is accurate because these products are typically manufactured in large quantities through a continuous production flow, making process costing the appropriate method.
Reason (R) Analysis: Definition of Process Costing
The reason defines process costing as a method used when a product passes through two or more sequential processes to be converted into a finished good. This definition correctly captures the essence of industries where process costing is applicable.
Relationship Between Assertion (A) and Reason (R)
Reason (R) explains *why* Assertion (A) is true. The multi-step nature of production described in Reason (R) is precisely the characteristic of industries mentioned in Assertion (A) that necessitates the use of process costing. Therefore, Reason (R) provides the correct justification for the validity of Assertion (A).
Conclusion
Both Assertion (A) and Reason (R) are correct statements. Furthermore, Reason (R) correctly explains Assertion (A).
The most appropriate answer is Option A.
Similar Questions
- Match List - I with List - II.
List - I List - II A. Ambiguous instrument I. An incomplete or blank negotiable instrument properly stamped and signed. B. Inchoate instrument II. A bill of exchange drawn on a specified banker, payable on demand C. Cheque III. An instrument, which is in such form that it may either be treated as bill of exchange or promissory note. D. Bank draft IV. It is an order issued by one bank to another or on its own branch instructing to pay a sum of money to a specified person or his order.
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A. Variable cost
B. Profit
C. Contribution
D. Sales
E. Fixed cost
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A. Interest on loans or bank mortgages
B. Interest received on bank deposits, loans and investments
C. Expenses and discounts on issue of shares, debentures etc.
D. Loss by fire not covered by insurance
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Choose the correct answer from the options given below : - Match List - I with List - II.
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Choose the correct answer from the options given below : - Arrange the following steps of incorporation of a company in chronological order :
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B. Drafting and signing of MoA and AoA
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D. Reservation of name by filling an application
E. Pay fees and amount of stamp duty
Choose the correct answer from the options given below : - As per Section 52 of Companies Act 2013, the securities premium account can be utlized for which of the following purpose ?
A. Issue of partly paid bonus share
B. Writting off preliminary expenses
C. Writing off the issue expenses
D. Premium payable on the redemption of preference share/debenture
E. Buy-back of its own share or other securities under Section 68.
Choose the correct answer from the options given below : - Which of the following are correct in respect of Quorum required to hold a valid General Meeting of a company ?
A. For a Public company, minimum 5 members personally present in case of number of members is not more than, 1000.
B. For a Public Company, minimum 20 members personally present, when number is more than 1,000 but up to 5,000.
C. For a Public Company, minimum 30 members personally present, when number of members is more than 5,000.
D. In case of Private Company, minimum 3 members personally present.
E. One member may constitute a valid Quorum in case Tribunal calls or directs the calling of a general meeting.
Choose the correct answer from the options given below : - Match List - I with List - II.
List - I List - II A. Article of Association (AoA) of a company limited by guarantee and not having share capital I. Table I B. AoA of an unlimited company and having share capital II. Table F C. AoA of company limited by share III. Table G D. AoA of company limited by Guarantee and having share capital IV. Table H
Choose the correct answer from the options given below : - Given below are two statements : one is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A) : Considering the harmful effects of liquor and tabacco products, the government of India banned the advertising of these products. As a reaction to this, the manufacturer of these products started seeking other way to promote these products.
Reason (R) : Manufacturer introduced various other products (surrogates) in the market with the same brand name (like sodas) to remind the target market of their original products.
In the light of the above statements, choose the most appropriate answer from the options given below : - Arrange the following steps of communication process as per DAGMAR model in proper sequence :
A. Attitude
B. Action
C. Aware
D. Unaware
E. Comprehension and Image
Choose the correct answer from the options given below :
Important Questions from Miscellaneous
- Which of the following scheduler/schedulers is/are also called CPU scheduler ?
(A). Short Term Scheduler
(B). Long Term Scheduler
(C). Medium Term Scheduler
(D). Asymmetric Scheduler
Choose the correct answer from the options given below: - A situation where two or more processes are blocked, waiting for resources held by each other is called:
- External fragmentation occurs ________.
- Which disk scheduling algorithm looks for the track closest to the current head position?
- Which CPU scheduling algorithm prefers the process with the shortest burst time?
