Question

you
7Q1- What is departmental accounting? How could
allocate
indirect expenses between various departments ? Also discuss
advantages and limitations of departmental according​

Answer 1

Explanation:

7Q1- What is departmental accounting? How could

allocate

indirect expenses between various departments ? Also discuss

advantages and limitations of departmental according

Answer 2

Answer:

Departmental Accounting refers to maintaining accounts for one or more branches or departments of the company. Revenues and expenses of the department are recorded and reported separately. The departmental accounts are then consolidated into accounts of the head office to prepare financial statements of the company.

Fixed cost classification is the simplest way to allocate indirect costs. This method works with costs such as depreciation and labor that can be classified as fixed. Fixed costs are allocated as a fixed charge to a specific business asset or department within the business.l