Assertion (A): If the firm is prepared to incur increased cost on transportation, it may be in a position to reduce its inventory cost

Reason (R): As in such a case, the firm can use the fastest mode of transport and rush the goods/stocks to the desired warehouse, unmindful of the cost of transportation


  • A

    Both (A) and (R) are true and R) is correct explanation of A)


  • B

    Both (A) and (R) true but R) is NOT the correct explanation of A)


  • C

    (A) is true but (R) is false


  • D

    (A) is false but (R) is true