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
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.