A business organization prepares departmental account in order to?

A. ascertain 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 – ascertain the contribution of each department to the organization

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.