Financial management and production department, Financial Management

The production department in any firm is concerned with provision of production facilities, production cycle, skilled and unskilled labor, storage of finished goods, capacity utilization, etc. The financial management has a useful role to play in interaction with the production management as the cost of production assumes a substantial portion of the total cost. The production department may be required to take various decisions like Increase in capacity utilization, installation of a safety device, replacing machinery, installation of materials monitoring device, improvisations of production facilities, etc. All the decisions have financial implications and therefore should be evaluated in the light of the Objective of the maximization of the shareholders wealth. So, the financial management has a role to play.

Posted Date: 6/19/2013 6:48:59 AM | Location : United States

Related Discussions:- Financial management and production department, Assignment Help, Ask Question on Financial management and production department, Get Answer, Expert's Help, Financial management and production department Discussions

Write discussion on Financial management and production department
Your posts are moderated
Related Questions
Steps involved in the Process of Securitization The following are the major steps involved: The lender (also called the originator) - in th

#questThe managing directors of three profitable listed companies discussed their companies'' dividend policies at a business lunch. Company A; has deliberately paid no dividends

What are compensating balances and why do banks require them from some customers?  Under what circumstances would banks be most likely to impose compensating balances? Compensa

Reinvestment risk is the risk involved in reinvesting the proceeds received from the issuer against callable bonds. During falling interest rate periods, investor canno

Dividend cover Dividend cover = Profit available to ordinary shareholders (PAT) / Annual dividend(no. of times) Or =    EPS/Dividend per share Dividend cover shows safety

Activity Ratio's   RT:           The Receivables Turnover ratio is the ratio between sales to accounts receivables. This says exactly how fast a company can collect on the s

Stream of Expected Returns Investment returns can take many forms. An investor must consider all these forms to evaluate an investment option accurately. A brief description of

Social Assistance Program for the Elderly For the elderly destitutes, the Central and many State Governments have designed several social assistance programs. Under the nationa