They are structured according to certain business requirements and these departments will vary depending on the type of business being practiced.
Production-Finance Interface As we all know in any manufacturing firm, the Production Manager controls a major part of the investment in the form of equipment, materials and men. He should so organize his department that the equipments under his control are used most productively, the inventory of work-in-process or unfinished goods and stores and spares is optimized and the idle time and work stoppages are minimized.
If the production manager can achieve this, he would be holding the cost of the output under control and thereby help in maximizing profits.
He has to appreciate the fact that whereas the price at which the output can be sold is largely determined by factors external to the firm like competition, government regulations, etc. Similarly, he would have to make decisions regarding make or buy, buy or lease etc.
We have so far briefly reviewed the interface of finance with the non-finance functional disciplines like production, marketing etc.
Besides these, the finance function also has a strong linkage with the functions of the 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.
Economics — Finance Interface The field of finance is closely related to economics. Financial managers must understand the economic framework and be alert to the consequences of varying levels of economic activity and changes in economic policy.
They must also be able to use economic theories as guidelines for efficient business operation. The primary economic principle used in managerial finance is marginal analysis, the principle that financial decisions should be made and actions taken only when the added benefits exceed the added costs.
Nearly all-financial decisions ultimately come down to an assessment of their marginal benefits and marginal costs. These functions are closely related and generally overlap; indeed, managerial finance and accounting are often not easily distinguishable.
In small firms the controller often carries out the finance function, and in large firms many accountants are closely involved in various finance activities.
However, there are two basic differences between finance and accounting; one relates to the emphasis on cash flows and the other to decision making.what is marketing and explain interface with other functional areas.
List of Functional Areas of a Business Part of a business’ growth is the deployment of separate departments which functions with specific focus and definitive path.
They are structured according to certain business requirements and these departments will . There are five main functional areas of management viz., human resource, production office, finance and marketing; which have been discussed below.
Nowadays, some new and emerging dimensions are also considered areas of management as: time management, environment management, transport management, international management, forex management.
Jun 09, · Marketing interface with other functional areas Marketing's Relationship with other Functions. Functions within an organization.
marketer needs to make sure that he or she is working with the customer service provision since it is a vital customer interface. The customer service provision may also provide speedy and timely.
Knowing the different functional areas of a business is a basic but major necessity for an entrepreneur especially when he’s still in the planning stage. MARKETING/PROMOTION. function is to handle the business, planning, decision-making, and also financial review.
This department links with other departments to ensure the smooth flow. Marketing interface has to exist with other functional areas in anorganization. Some of the other functions will include sales,production, accounting and human resource among others.