Advantages of Departmental Account - SS3 Accounting Past Questions and Answers - page 1
What is one advantage of departmental accounting?
Improved customer service
Reduced tax liability
Improved cost control
Increased shareholder dividends
What does departmental accounting help management to do?
Identify areas where costs can be increased
Make uninformed decisions
Identify areas where costs can be reduced or controlled more effectively
Allocate resources randomly
What does departmental accounting promote?
Blaming others for poor performance
Accountability
Unethical behaviour
Resource wastage
What does departmental accounting help to facilitate?
Resource wastage
Confusion among employees
Performance measurement
Increased tax liability
What does departmental accounting help to manage?
Only employee salaries
Only the budget
Only the performance of the business as a whole
Costs, resources, and performance of each department
What is the main benefit of departmental accounting for businesses?
The main benefit of departmental accounting for businesses is improved cost control, which enables them to identify areas where costs can be reduced or controlled more effectively.
How does departmental accounting help management make better decisions?
Departmental accounting helps management to make better decisions by providing financial information for each department or cost centre separately. This enables management to analyze the financial performance of each department, identify areas for improvement, and make informed decisions about resource allocation, investments, and expansion plans.