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The following item consist of two statements, one labeled as ‘Assertion A’ and

the other labeled as ‘Reason R’. You are to examine these two statements carefully and decide

if the Assertion A and the Reason R are individually true and if so, whether the Reason is a

correct explanation of the Assertion. Select your answers to these items using the codes

given below and mark your answer sheet accordingly.

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

(b)  Both A and R are 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

 Assertion (A) : A product layout is preferred when the flexibility in sequence of operations
                         is required.

 Reason (R) : Product layout reduces inventories as well as labour cost.

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