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