Departmental Accounting System: This is an accounting system which records the transactions of a particular department and shows its performance. Direct Expenses: Direct expenses are expenses which are directly traceable to the production units or department. Indirect Expenses: Indirect expenses are expenses which are not directly traceable to the production units and these expenses are incurred for more than one unit or departments. Indirect expenses are also called as overheads . To determine: The contribution to overhead and contribution as % of sales for each department

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Chapter 24, Problem 9QS

To determine

Introduction:

Departmental Accounting System: This is an accounting system which records the transactions of a particular department and shows its performance.

Direct Expenses: Direct expenses are expenses which are directly traceable to the production units or department.

Indirect Expenses: Indirect expenses are expenses which are not directly traceable to the production units and these expenses are incurred for more than one unit or departments. Indirect expenses are also called as overheads.

To determine: The contribution to overhead and contribution as % of sales for each department

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