The overall functions of management accounting may be attended to by personnel under whatever designation - Accountant, Chief Accountant, Registrar-Accounts; Finance Officer, Chief Accounts/Finance Officer; Financial Adviser - and their group. In this connections, the personnel have a double role - both as staff and line functionaries.
Whatever the designation(s) and the strength of the staff employed, the fiance function is to attend to a primary need of a business as regards obtaining and disbursing of funds. Here are included : obtaining of funds at the lowest cost (to the firm); and making optimal use of the funds. Inter-alias, the concerns and
problems to be addressed include :
- Types of expenditure that the firm can/must commit itself to - Project Selection, Replacement Analysis, Equipment Purchase, etc.;
- Volume, and time distribution of that volume of funds that must be committed/budgeted for each type of expenditure under (a) - Performance Budgeting;
- The desirable financing pattern, i.e. the chronology and volumes of funds to be arranged for so as to satisfy (b) without any hitch - Procurement Budgeting/Financing Schedule;
- Projects, production lines and activities in which the firm can engage within (any extras within) the total funds on hand for maximizing the benefits for @ firm - Capital Rationing~Budgeting;
- Actions to be taken when expectations do not materialist and failures (and loss of standing) must be averted - Emergency Planning; and
- Methods of meeting the promises of repaying, reimbursing or recompensing the funds that have been borrowed from outside - Debt Servicing.
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