Consider the following pairs of a standard and the functional area in which it is used to gauge performance:
(A) Liquidity – Finance and Accounting
(B) Cost – Production
(C) Labour relations – Marketing
(D) Advertising expenditures – Marketing
(E) Inventories – Production
Which of the pairs given above are correctly matched?
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (B) and (D) only
(A) Liquidity – Finance and Accounting — Correct. Liquidity shows whether a firm can pay its short-term dues. It is a finance and accounting standard.
(B) Cost – Production — Correct. Cost of production is a production standard, along with quantity and quality.
(C) Labour relations – Marketing — Incorrect. Labour relations deal with the firm and its workers. They are a human resource management standard.
(D) Advertising expenditures – Marketing — Correct. Advertising expenditures are spent on selling. They are a marketing standard.
(E) Inventories – Production — Incorrect. Inventories are a finance and accounting standard, listed with capital expenditures, flow of capital and liquidity.
NCERT (2026-27 Edition):
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