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Interface Between Finance and Other Functions: Financial Management and Cost Accounting

The document discusses the interface between the finance function and other functions within an organization, including cost accounting, production, marketing, personnel management, top management, and the organization of the finance function itself. It notes that the finance manager is concerned with proper utilization of funds and operational costs. It also states that production, marketing, personnel, and top management decisions require financial inputs and should be made jointly with the finance department. Finally, it provides an organizational chart showing the typical structure of a finance function.

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Ashish Bhardwaj
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© Attribution Non-Commercial (BY-NC)
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Download as DOC, PDF, TXT or read online on Scribd
344 views

Interface Between Finance and Other Functions: Financial Management and Cost Accounting

The document discusses the interface between the finance function and other functions within an organization, including cost accounting, production, marketing, personnel management, top management, and the organization of the finance function itself. It notes that the finance manager is concerned with proper utilization of funds and operational costs. It also states that production, marketing, personnel, and top management decisions require financial inputs and should be made jointly with the finance department. Finally, it provides an organizational chart showing the typical structure of a finance function.

Uploaded by

Ashish Bhardwaj
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Interface between finance and other functions

Financial management and Cost accounting

The finance manager is concerned with proper utilization of funds and, therefore, he is rightly concerned with the operational cost of the form.

Financial management and Production

In a manufacturing firm, the production manager controls the investment in the form of equipment,

material and men. He should so organize his department that he should maximize the output.

Financial management and Marketing

Determination of the appropriate price for the firms product is of importance both to the marketing and the finance managers and,

therefore, should be a joint decision of both.

Financial management

management

and

Personnel

The recruitment, training and placement of staff are the responsibility of the personnel department. However, all this requires finances and, therefore, the decisions regarding these aspects cannot be taken by the personnel department in isolation of the finance department.

Financial management and top management


Strategic planning and management control are two important functions of the top management. Finance function provides the basic inputs needed for undertaking these activities.

Organization of the finance function


Board of directors

President Vice President Vice President Vice President Vice President Marketing Production Finance Personnel

Controller Planning & General Budgeting Provision of Finance Accounting Internal Control Tax Admin. Banking

Treasurer Appraisal & Reporting Credit & Collections

Investment

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