There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion: Final goods will not undergo any further transformation at the hands of any producer. 
Reasoning: Final goods may undergo transformation by the action of the ultimate purchaser.

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

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

Assertion: Final goods will not undergo any further transformation at the hands of any producer.  This is correct. Final goods, by definition, are not intended for further processing or transformation by producers. They are meant for final consumption by the end user.

Reasoning: Final goods may undergo transformation by the action of the ultimate purchaser. This is also correct. Many such final goods are transformed during their consumption. For example, the tea leaves purchased by the consumer are not consumed in that form – they are used to make drinkable tea, which is consumed. Similarly most of the items that enter our kitchen are transformed through the process of cooking. But cooking at home is not an economic activity, even though the product involved undergoes transformation. Home cooked food is not sold to the market. However, if the same cooking or tea brewing was done in a restaurant where the cooked product would be sold to customers, then the same items, such as tea leaves, would cease to be final goods and would be counted as inputs to which economic value addition can take place. Thus it is not in the nature of the good but in the economic nature of its use that a good becomes a final good.

The reasoning does not explain as to why the final goods will not undergo any further transformation at the hands of any producer.