JAMB - Accounts Principles Of Accounts (2019 - No. 66)
The objective of departmentalization is to
ensure that departmental managers are adequately monitored
record transactions for each department for better documentation
tackle any recording problem as a result of expansion
evaluate the profit of different departments
Explanation
The preparation of departmental accounts will show which department is most profitable and may guide in decision making process as to which department must be closed down in some organizations.
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