Accounting for IGCSE & O level - Final Statements (Section 6 - No. 49)
In a departmental income statement, what is the primary purpose of having separate columns?
To show the gross profit for each department.
To show the expenses for the entire business.
To show the profit or loss for each department.
To show the total income for the entire business.
Explication
The primary purpose is to highlight the financial performance, specifically profit or loss, of each individual department within the business.