Which one of the following is not the advantage of departmental accounting?
Answers
Answer:
spend time planning the benefits and drawbacks of the statement given.
make sure you have relevant supporting points.
put your advantages together in one body paragraph and the same with the disadvantages.
follow a safe advantage disadvantage essay model.
Explanation:
so you got the answer
Departmental accounting is done when there are 2 or more departments are present in the organization.
To calculate the departmental profit they are prepared and to ascertain the cost and efficiency they are providing to the department.
the department accounts considers of
1. Departmental trading account
2. Departmental profit and loss account.
3. combined profit and loss account.
Sometimes organizations has several departments of various type of products as the one department transfers the product as raw material to the other department and the department may transfer such raw material on the profit to the other , but considering the whole organization as one we need to deduct such stock reserve from the closing stock of department to show the actual profit earned by the department.