The objective of departmental account is to

  • A ascertain the amount of profits or losses for the enterprise
  • B ascertain the amount of profits or losses for each department
  • C ascertain the cost of running the organization
  • D offset the loss of each department
jamb 2016accounting

The correct answer is B. ascertain the amount of profits or losses for each department

The main objectives of departmental accountingare: To check out an interdepartmental performance. To evaluate the performance of the department with the previous period result. The gross profit of eachdepartment can be ascertained.

Previous question Next question