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

Assertion: The Management uses accounting information to arrive at various decisions like determination of selling price, cost controls, investment into new ventures, etc.
Reasoning: The management has the responsibility to safeguard the customer’s investment and increase its value by managing the business efficiently.

Assertion (A) is true but Reasoning (R) is not correct.

The correct answer is option 3- Assertion (A) is true but Reasoning (R) is not correct.

Assertion: The Management uses accounting information to arrive at various decisions like determination of selling price, cost controls, investment into new ventures, etc. This is true. . Management of the firm would be interested in every aspect of the financial analysis. It is their overall responsibility to see that the resources of the firm are used most efficiently and that the firm’s financial condition is sound. Financial analysis helps the management in measuring the success of the company’s operations, appraising the individual’s performance and evaluating the system of internal control.

Reasoning: The management has the responsibility to safeguard the customer’s investment and increase its value by managing the business efficiently. This is not correct. Customer does not invest in the business, they just purchase goods for his satisfaction. Investors invest in the business. Management is not responsible to increase the value of his purchasing.

Thus, correct answer is option 3 i.e. assertion is true but reason is not true.