Read the given below two statements and mark the correct answer.
Assertion (A): Cost accounting assists in analysing the expenditure for ascertaining the cost of various products manufactured or services rendered by the firm and fixation of prices thereof.
Reason (R) : It helps in increasing the costs and providing necessary costing information to management for decision-making.
Answer & explanation
Correct answer: option 3
The correct answer is option 3- Assertion (A) is true but Reason (R) is False.
* Reason is false as cost accounting helps in controlling costs not increasing it.
Cost accounting assists in analysing the expenditure for ascertaining the cost of various products manufactured or services rendered by the firm and fixation of prices thereof. It also helps in controlling the costs and providing necessary costing information to management for decision-making.