4 Manegement Functions

4 Manegement Functions

Accounting Management (Business) is the practical application of management techniques to control and report on the financial health of the organization. This involves the analysis, planning, implementation, and control of programs designed to provide financial data reporting for managerial decision making. This includes the maintenance of bank accounts, developing financial statements, cash flow and financial performance analysis. Accounting management is a mandatory knowledge module of any MBA program.

Accounting (IT) management: Accounting is often referred to as billing management. The goal is to gather usage statistics for users.

Using the statistics the users can be billed and usage quota can be enforced.

Examples:

• Disk usage

• Link utilisation

• CPU time

RADIUS, TACACS and DIAMETER are examples of protocols commonly used for accounting.

For non-billed networks, 'Administration' replaces 'Accounting'. The goals of Administration is to administer the set of authorized users, by establishing users, passwords and permissions; and to administer the operations of the equipment such as by performing software backup and synchronization.

Corporate finance is a specific area of finance dealing with the financial decisions corporations make and the tools as well as analyses used to make these decisions.

The discipline as a whole may be divided among long-term and short-term decisions and techniques with the primary goal being the enhancing of corporate value by ensuring that return on capital exceeds cost of capital, without taking excessive financial risks. Capital investment decisions comprise the long-term choices about which projects receive investment, whether to finance that investment with equity or debt, and when or whether to pay dividends to shareholders. Short-term corporate finance decisions are called working capital management and deal with balance of current assets and current liabilities by managing cash, inventories, and short-term borrowing and lending (e.g., the credit terms extended to customers).

Corporate finance is closely related to managerial finance, which is slightly broader in scope, describing the financial techniques available to all forms of business enterprise, corporate or not.

Contents

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• 1 Capital investment decisions

o 1.1 The investment decision

 1.1.1 Project valuation

 1.1.2 Valuing flexibility

o 1.2 The financing