The main advantage of a departmental account is that its

  • A expenses are shared
  • B gross profit is computed
  • C net profit is computed
  • D balance sheet is obtained
jamb 2012accounting

The correct answer is B. gross profit is computed

The most significant advantages of departmental accounts are: Individual results of each department are known which helps to compare the performances among all the departments, i.e., the trading results can be compared. Departmental accounts help to understand or locate the success, failure, rates of profit, etc.

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