How can you define departmental accounting?

A departmental accounting system is an accounting information system that records the activities and financial information about the department. Managers can use the financial information from the departmental accounting system to tell how profitable and efficient each department is.

Larger corporations can't be properly accounted for with one single, centralized accounting system. That is why the corporation is divided into many different departments like the shipping and receiving department, sales department, and manufacturing department. Many companies also departmentalize based on products. For instance, Microsoft has a Windows department, Xbox department, and Microsoft Office department.

Each one of these departments has its own accounting system to keep track of revenues and expenses. These accounting systems also provide useful efficiency ratios for management. Managers can use these ratios to evaluate the departments and consider merging departments or getting rid of some departments altogether

A separate accounting with in the company for a department is called DEPARTMENTAL ACCOUNTING. It provide the departmental productivity and its participation to the P&L of company.

Its based on separate booking keeping system and summaries the event same like the financial statements.    

It is a type of accounting in which separate account is created for departments. It is managed separately as well as shown independently in the balance sheet.