Financial Decision Making

Financial Decision Making
1

INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
1. Introduction of the selected organization................................................................................3
2. Accounting and financial department......................................................................................4
3. Importance of accounting and financial department...............................................................4
4. Role of accounts department...................................................................................................5
5. Role of finance department......................................................................................................6
TASK 2............................................................................................................................................7
1. Calculate the ratio of Alpha Ltd..............................................................................................7
2. Analysis of financial ratios......................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
2

INTRODUCTION
Financial decision making involves the structured and coordinated action in the organization
among the different alternative courses of activity in the sense of monetary operation which
effective the most (Ball, 2013). Financial decision making process is one of the essential aspects
of the organization which help the managers to evaluate overall performance and then take
decisions accordingly. The essential aim is to provide new or creative ideas to achieve business
goals, dreams and purpose. This study discusses various elements which is based on two task,
first one is about Camden Ltd where role of finance and accounts department are analysis in
organizational context. On the other side, second is based on ratio analysis of Alpha Ltd and
critically evaluate its performance and how to improve it.
MAIN BODY
TASK 1
1. Introduction of the selected organization
Patrick Lavery established Camden in 1983 as a family business. After 35
years of formation, its core values of the business remain unchanged and remain at the certain of
the business (Camden Group, 2020). Camden products are engineered for durability, maximum
effect on quality and definitely, strength and protection. They have invested heavily in uPVC
recycling and are an eco friendly business. It is possible for us to create our first 80 percent
recycled inlite profile device. It ensures that, they get the highest price and help us build the best
future when the doors and windows are from Camden. More than 35 years, Camden has also
been an industry leader and innovator in PVCu goods. CAMDEN has built a robust product line
that ideally compliments the environmental criteria of the present environment by continually
defining and enhancing our goods and processes. Camden provides healthy and sustainable
PVCu windows, as well as lightweight doors for the residential, social and trade new
construction sectors with value and creativity at the center of our market. Camden is able to
manufacture 10,000 frames a week with production facilities on 160 acres, as well as on-site
processing and extruder plants.
3

2. Accounting and financial department
Accounting department: It assists the company to which it contributes with accounting
and financial assistance services. Department reported payable and receivable records, stock,
wages, fixed assets and the financial components (Jetter vand Walker, 2017). Accountants
review each department's documents to assess the financial status of the corporation and all the
adjustments necessary to operate the organization economically. The accounting division offers
management services and controls a company's finances. Its duties include documenting
accounts, payment of bills, consumer billing and monitoring of assets and expenses, payroll and
monitoring of essential tax records.
Financial department: The section that handles organizational money and other finance
related aspects consider into financing department. Usually, the corporate functions of a financial
department involve planning, coordination, and monitoring, accounting and financial
management. Generally, finance department generates financial statements of the organization.
The Department of Finance is the component of an entity that is responsible for raising funds for
company, handling funds within the organization and coordinating the spending of funds on
different assets.
3. Importance of accounting and financial department
Accounting department is important for Camden Ltd because management actions and
decision making based on it. For the management or decision-making of an entity, accounting
information is quite important. Without accurate knowledge, managers will not determine to
support that claim. It must be based on actual facts and statistics to reach a decision. Data is
essential for decision-making at all management levels. Accounting reports on the financial state
of the company such as profit and loss, expense and revenue, obligations, assets etc. This is also
why accounting is incredibly important in industry. Management of Camden Ltd relies on
objective analysis and knowledge generated by accounting for the right decision. Accounting's
main aim is to regularly document financial payments in the accounting books and to figure out a
business' profit-loss and financial status.
The key functions of Accounting are assessment of profit loss and financial position,
evaluation and review of accounts, statements, and production of accounting method,
compilation of quantitative and economic data (Lawrence, 2013). It addition, it includes creation
4