Accounting for IGCSE & O level - Final Statements (Section 10 - No. 48)
What is one of the main objectives of preparing separate departmental accounts?
To reduce the tax liability of the business.
To improve the overall market share.
To identify and investigate poor performance in a department.
To increase the total sales of the business.
Explication
The main objective is to enable managers to pinpoint areas where departments may require improvement.