Accounting · Management Accounting
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: In budgetary control, a Key Factor or Principal Factor is a specific constraint that fundamentally limits and influences all other functional budgets. Reason R: Budgets cover all functional areas independently and possess no interrelation, allowing each department to set targets without considering constraints like limited plant capacity. In the light of the above statements, choose the correct answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A is not correct but R is correct
- 2A is correct but R is not correct✓
- 3Both A and R are correct but R is NOT the correct explanation of A
- 4Both A and R are correct and R is the correct explanation of A
Correct answer
A is correct but R is not correct
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