Question

An accounting system that provides information that management can use to evaluate the performance of a department's activities is a:______.
A. Service accounting system.
B. Standard accounting system.
C. Revenue accounting system.
D. Departmental accounting system.
E. Cost accounting system.

Answer 1

Answer: D. Departmental accounting system.

Explanation:

As the term implies, Departmental accounting system engages in accounting for individual departments. The financial information of the department of interest will be recorded as well as other activities.

Management will then use this information to analyze and understand how well the department is doing. The information will also tell them if the department is being cost efficient and profitable.