Basic Financial Management Questions and Answers
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1 :: Do you know internal structure of a finance department in medium and large businesses?

There is no standard pattern for the organization of finance function. In general, internal structure of finance department can take following form:

- Board of directors
- Executive Committee

Vice President(Production)
Vice President(Finance)
-> Financial Controller
•Accounting and Costing
•Annual Reporting
•Internal Auditing
•Budgeting
•Statistics and Finance
•Record Keeping
-> Treasurer
•Receivables management
•Taxes and Insurance
•Cost management
•Securities
•Banking Relations
•Real Estates
•Dividend Distribution
Vice President(Marketing)
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2 :: Explain the main duties and responsibilities of a finance executive?

Recurring Duties:

- Deciding the financial needs

- Raising the funds required

- Allocation of funds
•Fixed assets management
•Working capital management

- Allocation of Income

- Control of Funds

- Evaluation of Performance

- Corporate Taxation

- Other duties : to prepare annual accounts, carrying out internal audit, safeguarding securities, present financial reports to top management. Etc.

Non recurring Duties :

- Preparation of financial plan at the time of company promotion

- Financial adjustments in times of liquidity crisis

- Valuation of the firm at the time of acquisition and merger etc.
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3 :: What is uniform costing? What is the scope of uniform costing?

Uniform costing is the application of the same accounting and costing principles, methods or procedures uniformly by various undertakings in the same industry. It is a particular technique which applies the usual accounting methods like standard costing, marginal costing, and budgetary control.

Uniform costing method can be advantageously applied:

-In single organisation having number of branches.

-In a number of firms in the same industry who are inter connected through trade association.

- In industries which are similar such as cotton, gas and electricity.
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