Read the following statements and choose the correct option.

Assertion: Planning is the most challenging activity for the management as it guides all future actions.
Reasoning:. Sometimes the costs incurred for the planning may not justify the benefits derived from the planning.

Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

The correct answer is option 2 i.e Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

Planning promotes innovative ideas: Since planning is the first function of management, new ideas can take the shape of concrete plans. It is the most challenging activity for the management as it guides all future actions leading to growth and prosperity of the business.
Planning involves huge costs: When plans are drawn up huge costs are involved in their formulation. These may be in terms of time and money for example, checking accuracy of facts may involve lot of time. Detailed plans require scientific calculations to ascertain facts and figures. The costs incurred sometimes may not justify the benefits derived from the plans.