Difference Between Branch And Department

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Followings are the main differences between branch and department:

1. Branches are separated from the main organization. Departments are attached with the main organization under a single roof.

2. Branches are the outcome of tough competition and expansion of business. Departments are the result of fast human life.

3. Branches are geographically separated. Departments are not separated rather existed under a same roof.

4. Branches are of different types like dependent, independent and foreign. There is no such classification in department because all are common under the same roof.

5. Allocation of branch common expenses does not arise. Allocation of departmental common expenses is a tough job.

6. To find out the net result of the organization, the reconciliation of different branch account is a main job.In departmental accounting, no reconciliation is necessary because there is a central account division.

Related Topics
Concept And Objectives Of Departmental Accounting
Accounting Procedure In Departmental Accounts
Allocation Of Expenses In Departmental Accounting
Journal Entry For Inter-departmental Transfers

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