What is the primary goal of departmental cost reports?

The primary goal of departmental cost reports is to provide insights into department-level spending. These reports break down the expenditures associated with specific departments, allowing management to understand where resources are allocated, how effectively they are being used, and if they align with the department's budget goals. By analyzing these costs, organizations can make informed decisions about budgeting, resource allocation, and cost-saving measures within each department.

Departmental cost reports can facilitate discussions about financial performance, highlight areas where spending may be exceeding expectations, and identify trends that could inform strategic planning. This information is crucial for department heads and financial managers as they work to optimize expenditures and enhance operational efficiency.

While identifying new project opportunities, tracking employee performance, and assessing company-wide financial health are important aspects of business management, they are not the primary focus of departmental cost reports. These reports are specifically designed to zoom in on department-level financials, making option C the most accurate choice.