Financial Decision Making in Manufacturing Companies

Running Head: Financial decision making 1
Financial decision making

Financial decision making 2
Table of Contents
TASK 1.......................................................................................................................................................3
Role of Accounting and Finance in the Manufacturing companies.............................................................3
TASK 2.......................................................................................................................................................4
Liquidity..................................................................................................................................................4
Profitability..............................................................................................................................................5
Efficiency................................................................................................................................................5
Recommendation and Conclusion...............................................................................................................6
References...................................................................................................................................................7

Financial decision making 3
TASK 1
Role of Accounting and Finance in the Manufacturing companies
Accounting and finance are assumed to be a basic job in the administration of any business.
Organizations work on cash, and if the cash is not kept at the hand of the controlled manner,
there are high chance that the business is going to suffer. By appropriately representing your
organization's money and costs, organization like ALPHA LIMITED can deal with the
progression of cash and along these lines direct the course of your business (Saeidi. et al 2015).
In the present scenario the accounting and the finance both plays a crucial role in the
development of the manufacturing sector. This concept helps in devising the new business
strategies with the help of which the ALPHA LIMITED can improve the existing position of the
business. The strategies involve the preparation of the budgets, monthly reports, auditing of the
transactions as well as comprising if the financial data under one roof known as the annual report
(Maskell, Baggaley and Grasso, 2016).
Accounting is also often known as the language of the business which with the help of the
financial terms can reorganize the data of the ALPHA LIMITED and present it to the users of the
financial statements. Accounting assumes a noteworthy job in organizations with regards to the
money related exchanges of a business. Budgetary bookkeeping records all exchanges and
condenses the sums on fiscal summaries toward the finish of every month and year. Partners and
the members of the business dissect the monetary data. Partners incorporate banks, investors,
proprietors of the ALPHA LIMITED and representatives and also utilize this data to settle on
loaning and contributing choices (Nielsen, Mitchell and Nørreklit, 2015).
In short it helps to manage the entire business to work in the efficient as well as the effective
manner. The management accounting helps in allowing the managers of the ALPHA LIMITED
ALPHA LIMITED to carefully analyze their responsibilities and work accordingly. Since the
reports are customized to the requirements of individual directors, and their capacity is to supply
pertinent, precise, opportune data in an organization that will help administrators in deciding. In