Question

Which of the following is not used to compute departmental profit.
Sales
Sales Returns and Alowances
Debtors
Purchases​

Answer 1

Answer:

Debtors

Explanation:

please mark it brainliest answer and follow me

Answer 2

The correct answer is option (c) Debtors.

Explanation:

• Debtors are not used to compute the Departmental Profit.
• The department profit method deducts all the expenses attributable to, and controlled by, a department from departmental sales.
• The motive is to ascertain and control the revenues, costs and thus profits of each department.
• A debtor is a company or individual who owes money.
• If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower, and if the debt is in the form of securities—such as bonds—the debtor is referred to as an issuer.
• Debtors are used to prepare accurate cash flow forecasts.