Accounting for IGCSE & O level - Final Statements (Section 10 - No. 15)
What are some advantages of using departmental accounts?
It allows for a comparison of departmental profits.
It helps to improve overall profitability.
It facilitates the identification of poorly performing departments.
It reduces the need for overall financial statements.
Explication
Departmental accounts aid in identifying strengths, weaknesses, and areas for improvement, but do not replace overall financial statements.