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The objective of departmental account is to

Accounts - Principles of Accounts
JAMB 2013

The objective of departmental account is to

  • A. ascertain the cost of running the organization
  • B. ascertain the amount of profit or loss for each department
  • C. ascertain the amount of profits for losses for the enterprises
  • D. offset the loss of each treatment
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Correct Answer: Option B
Explanation

To check out an interdepartmental performance.
To evaluate the performance of the department with the previous period result.
The gross profit of each department can ascertain.
Unprofitable departments will reveal.


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