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A business organization prepares departmental account in order to

Accounts - Principles of Accounts
JAMB 2016

A business organization prepares departmental account in order to

  • A. asertian the contribution of each department to the organization
  • B. ascertain interdepartmental transfer
  • C. build other branches
  • D. know the number of departments in the organization
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Correct Answer: Option A
Explanation

The main objectives of departmental accounting are: 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 be ascertained.

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