2. Meaning of branch accounting:
Branch accounting is a specialized accounting methods adopted by an organization
which has branches in different location. A branch is a subordinate division of an
organization. A branch is any establishment carrying on either the same or
substantially the same activity as that carried on by the head office of an
organization
3.
4. Advantages of branches:
When an organization operates branches in different location, the
following advantages are achieved by the head office:
1. The head office is able to extend its operations in different locations
in order to exploit the business opportunities available in the places;
2. Branch operations are considered to be an effective tool to face the
competition from the rival organizations;
3. Branch operations facilitate effective marketing network for the
overall objectives of the organizations
4. The expansion programs of an organization can be carried out
through opening different branches;
5. Branch operations facilitate more employment opportunities;
6. Branch operations increases the turnover of the organization and
thereby the profit of the organization;
7. Branch operations facilitate the organization to achieve economies of
large scale operations.
