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JAMB Principles of Accounts 2006 Question 38

Question 38

Departmental Accounts

Departmentalization of accounts is useful because it shows the

  1. A.overall performance of a firm
  2. B.price per unit of a product
  3. C.cost per unit of a product
  4. D.overall performance of a division.
Show the answer and explanation

Answer: D (overall performance of a division.)

Explanation

Departmental accounts show the profit or loss of each department (division) separately.