JAMB Principles of Accounts 2004 Question 32

Question 32

Departmental Accounts

A rapidly growing business organization with multiple units that is interested in comparing the performances and weaknesses of each unit should adopt

  1. A.manufacturing accounts
  2. B.consolidated accounts
  3. C.departmental accounts
  4. D.joint venture accounts
Show the answer and explanation

Answer: C (departmental accounts)

Explanation

Departmental accounts show the profit of each unit separately so their performance can be compared.