Financial Decision Making - Finance Module Assignment

This assignment delves into the core aspects of financial decision-making, emphasizing the interplay between historical financial accounts and management accounting in supporting organizational financial strategies. It addresses the significance of financial statements in providing crucial data, trend analysis, and insights for better allocation and efficiency in operations. The assignment further examines the priorities of profit-seeking companies, contrasting profit maximization with sustainable business growth, and highlights the key performance indicators used by these firms. Finally, it differentiates between the information required for short-term operational decisions and long-term strategic growth and development decisions, providing a comprehensive overview of financial decision-making processes.

Running head: FINANCIAL DECISION MAKING
Financial Decision Making
Name of the Student:
Name of the University:
Author’s Note:

1FINANCIAL DISCUSSION
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................2
Question 3........................................................................................................................................2
References........................................................................................................................................4

2FINANCIAL DISCUSSION
Question 1
The historical nature of the financial accounts are considerably equally important with the
management accounts for supporting the financial decision making. In the context of aforesaid
statement it is important that the financial accounts provide an organization with relevant data
and supportive tools. These can be in the form of past data trend analysis of the various business
operations undertaken by the company. On the other hand, important strategies and actions taken
by the management of the company for the purpose of implementation of actions would be
important in taking important financial decisions. Implementation of various possible
information’s and sources for better allocation, utilisation and efficiency in the operations are
some of the important aspects that helps an organisation in important financial decisions
(Weetman 2019).
Question 2
A Profit seeking company does always look for profit maximisation rather than
sustainable growth of business. The performance criteria that is usually placed by these firms are
measured by increasing financial profitability. The increase in financial profitability is mainly
seen from increasing revenue base and optimizing the cost involved in the business operations
(Balcan, Sandholm and Vitercik 2018).
Question 3
Information required on short-term decisions can be related to business operation, which
are eventually related in the field of various production, sales and financial operations. On the

3FINANCIAL DISCUSSION
other hand, the long-term financial decisions can be well related with the overall business growth
and developments that would be including growth and development strategies followed for
increasing and expanding the business activities (Graham et al., 2017).

4FINANCIAL DISCUSSION
References
Balcan, M.F., Sandholm, T. and Vitercik, E., 2018, June. A general theory of sample complexity
for multi-item profit maximization. In Proceedings of the 2018 ACM Conference on Economics
and Computation (pp. 173-174). ACM.
Graham, J.R., Hanlon, M., Shevlin, T. and Shroff, N., 2017. Tax rates and corporate decision-
making. The Review of Financial Studies, 30(9), pp.3128-3175.
Weetman, P., 2019. Financial and management accounting. Pearson UK.