Accounting WAEC

The objective of departmentalization is to?

A. ensure that departmental managers are adequately monitored
B. record transactions for each department for better documentation
C. tackle any recording problem as a result of expansion
D. evaluate the profit of different departments

Correct Answer: Option D

D. evaluate the profit of different departments

Explanation

The preparation of departmental accounts will show which department is most profitable and may guide in decision-making process as to which department must be closed down in some organizations.

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