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The objective of preparing a departmental account is to 

Accounts - Principles of Accounts
WAEC 2024

The objective of preparing a departmental account is to 

  • A. ascertain the cost of raw materials of each department.
  • B. ascertain the profit of each department.
  • C. determine the value of unused stock of each department.
  • D. calculate the stock turnover ratio of each department.
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Correct Answer: Option B
Explanation

The departmental account will help to determine which department is making profit and which is making loss.

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