Accounting for IGCSE & O level - Final Statements (Section 7 - No. 17)

What is the main purpose of a departmental income statement?

To calculate the total expenses of the business.

To determine the profitability of each department.

To calculate the total sales revenue of the business.

To prepare a cash flow forecast.

The primary goal of a departmental income statement is to show the profit or loss generated by each department.