Concept:Departmental accounting is used to determine the profit or loss of each department separately.
Explanation:In a departmental account, revenue and expenses are recorded separately for each department.
Indirect expenses are shared among departments using a fair basis of apportionment.
After charging these expenses, the net profit or net loss of each department is computed.
This helps management compare the performance of different departments and identify weak areas.
Computing only the gross profit is not enough because it ignores indirect expenses.
Thus, the main advantage is that the net profit of each department is known.
Answer:C. net profit is computed