Accounting for IGCSE & O level - Final Statements (Section 6 - No. 1)
Why is it important to identify the contribution to profit or loss of each department in a business?
To determine the salary of each department employee.
To identify and investigate poor performance.
To eliminate the need for a combined income statement.
To know the total expenses of the business.
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This helps in understanding where the business is succeeding and where it's facing challenges.