Working areas of the Finance department
Write a short note on the main working areas of the Finance department?
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The Finance department is mainly responsible for managing the cash-flows, borrowing, utilization of surplus funds, payment of salaries and wages, billing and collecting charges to the customers, processing invoices from the suppliers and paying suppliers.
Outputs: Any product or service formed from the consumption of resources. This can comprise information or paper work produced by the completion of the tasks of an activity.
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Actual Cost: It is the amount (sum) determined on the basis of cost acquired involving standard cost appropriately adjusted for the applicable variance.
Indirect Cost: A cost which can’t be recognized particularly with or traced to a specified cost object in an economically feasible manner.
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Activity: The real work task or step executed in generating and delivering products and services. The aggregation of actions executed within an organization which is helpful for the purpose of activity-based costing.
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