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Departmental accounts are maintained to ascertain the ____

Departmental accounts are maintained to ascertain the ____
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Profits of the entire organization
  • B Contribution of each department
  • C Expenses of each department
  • D Sales of each department.
Correct Answer: Option B
Explanation:
Departmental accounts are maintained to determine the performance of each department within an organization. By analyzing departmental accounts, businesses can evaluate:

The profitability and contribution of each department (i.e., how much each department is contributing to the overall profits of the company).

The expenses and revenues specific to each department.

This helps businesses understand which departments are performing well, which are underperforming, and whether resources need to be reallocated.

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