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WAEC Financial Accounting 2024 Question 26

Question 26

Departmental Accounts

The objective of preparing a departmental account is to

  1. A.ascertain the cost of raw materials of each department.
  2. B.ascertain the profit of each department.
  3. C.determine the value of unused stock of each department.
  4. D.calculate the stock turnover ratio of each department.
Show the answer and explanation

Answer: B (ascertain the profit of each department.)

Explanation

Departmental accounts show how much profit each department earns.