Concept:Departmental accounts help management measure how well each department or segment of the business is performing on its own.
Explanation:A business that operates different departments prepares separate accounts for each department.
The main purpose is to determine the individual profit or loss made by each department.
This allows management to compare the performance of one department with another.
It also helps the business identify the department that contributes the most to overall profit.
With this information, management can reward strong performance, investigate weak departments, and make better decisions.
Interdepartmental transfers may be recorded, but they are only internal bookkeeping entries and not the main reason for preparing departmental accounts.
The number of departments in the organization and the building of other branches are not objectives of departmental accounting.
Answer:A. ascertain the contribution of each department to the organization