Concept:Departmental accounts are prepared to measure the financial performance of each department separately.
Explanation:Each department is treated as a separate trading unit within the business.
All revenue, direct expenses, and allocated overheads are recorded separately for every department.
This helps the business compute the gross profit and net profit earned by each department independently.
It clearly reveals which department is making a profit and which department is making a loss.
Knowing the cost of raw materials, the value of unused stock, or the stock turnover ratio of each department alone does not fulfil this objective.
The main purpose is to ascertain the individual profit or loss of each department.
This information supports management control, performance appraisal, and better decision-making.
Answer:The correct option is B. ascertain the profit of each department.