Given below are two statement. one labelled as Assertion (A) and other as Reason (R): Assertion (A): Cost accounting is complementary to financial accounting. Reason (R): The result of cost accounting are not trustworthy. Choose the correct answer

Both (A) and (R) are true and (R) is correct explanation of (A)
Both (A) and (R) are true but (R) is not the correct explanation of (R)
(A) is true but (R) is false
(A) is false but (R) is true

The correct answer is: C. (A) is true but (R) is false.

Cost accounting is a branch of accounting that tracks and analyzes the costs of a business. It is used to help businesses make decisions about pricing, production, and other areas. Financial accounting, on the other hand, is a branch of accounting that records and reports a company’s financial performance. It is used to provide information to investors, creditors, and other stakeholders.

Cost accounting and financial accounting are both important for businesses, but they serve different purposes. Cost accounting is used to help businesses make decisions, while financial accounting is used to provide information to stakeholders.

The assertion (A) is true because cost accounting can provide businesses with valuable information that can help them make better decisions. For example, cost accounting can help businesses identify which products are most profitable, which costs can be reduced, and how to allocate resources more efficiently.

The reason (R) is false because the results of cost accounting can be very trustworthy. Cost accounting is a rigorous process that requires businesses to track and analyze a wide range of data. The results of cost accounting can be used to make informed decisions about pricing, production, and other areas.

Therefore, the correct answer is: C. (A) is true but (R) is false.

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