An accounting system that accumulates and reports costs incurred by each service department for management to evaluate the performance of a department is a:

A) Departmental accounting system.
B) Cost accounting system.
C) Service accounting system.
D) Revenue accounting system.
E) Standard accounting system.

A departmental accounting system is designed to accumulate and report costs incurred by each service department. This helps management evaluate the performance of each department and make strategic decisions based on the cost and revenue data. Cost accounting systems are similar, but they focus more broadly on the costs of goods sold or services rendered by a business as a whole, rather than individual departments. Service accounting systems and revenue accounting systems are not specific to departmental cost tracking. Standard accounting systems are a basic system used to record financial transactions, but they do not specifically focus on cost tracking or departmental performance evaluation.