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WAEC Financial Accounting 2021 Question 38

Question 38

Departmental Accounts

The objective of preparing departmental accounts is to determine the

  1. A.sales of each department.
  2. B.total cost attributable to each department.
  3. C.capital employed by each department.
  4. D.profitability of each department.
Show the answer and explanation

Answer: D (profitability of each department.)

Explanation

Departmental accounts show the profit of each department.