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Departmental Accounts — Accounting Keypoint

Departmental Accounts

We have to note that accounting information varies in its usefulness. This is because for a retail store with five departments, it is obviously better to know that the store has made N10,000 gross profit than to be completely ignorant of this fact. The figure of N10,000 gross profit unfortunately does not give the owners the insight into the business necessary to control it much more effectively. What would be far more meaningful would be the knowledge of the amount of gross profit or loss for each department.

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