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Departmental accounting base is cost accounting and need to analyse or absorb the what we spend what we earned exactly in the company Division/Department wise
Generally Departmental accounting prepare for identify the exact profit and losses and how to Improve or upgrade the company in the future periods
Its done to record separately the costs of individual departments which help the managers in resource allocation.
The Departmental Accounting is to charge the relevant cost to the concerned department cost pool.
In this way each department will charge the cost they incurred during the period.
Dears ,
departmental accounting means account prepared separately for the department and here ledgers will be opened trial balance will be prepared and also p&l account will be prepared and profit or loss is included in the main p&l account and also shown in the balance sheet .
Best reagrds
It's a cost center base accounting, under this expenses are recorded on the bases of department basis.
Departmental accounting is accounting method use to show cost center of the company
This cost center is measure against the contribution made by them
this is useful for knowing the various cost and take measure to control cost and budget preparation
Accountants use a system to record financial transactions and activities of any department in a company is called Departmental Accounting. This system reflects that how much profitable a department is.