DMA 1Management Accounting Investment appraisal should a new machine be bought

Dma 1management accounting investment appraisal

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DMA 1Management Accounting Investment appraisal - should a new machine be bought for the factory to replace an old machine near the end of its useful life? Chapter 9, 10, 11
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___________________________________________________________________________________________________________________ Page 7 of 19 IPK COLLEGE 1664, JALAN KULIM, 14202 BUKIT MERTAJAM, PENANG TEL : 012-5203212 / 0125113212 / 04-5512588 Subject: Financial Management (DFM1) Prepared by: Susan Lim Email : [email protected] Part 3: Managing the financial function (1) In a large corporation, the senior financial manager usually has the rank of vice president or senior vice president and goes by the title of chief financial officer, or CFO. The firm’s top finance and accounting executive is the CFO, who reports directly to the CEO. Positions that report directly to the CFO include the treasurer, risk manager, and controller. The internal auditor reports both to the CFO and to the audit committee of the board of directors. The external auditor and the ethics director also are ultimately responsible to the audit committee.
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___________________________________________________________________________________________________________________ Page 8 of 19 IPK COLLEGE 1664, JALAN KULIM, 14202 BUKIT MERTAJAM, PENANG TEL : 012-5203212 / 0125113212 / 04-5512588 Subject: Financial Management (DFM1) Prepared by: Susan Lim Email : [email protected] Position reporting to the CFO The treasurer looks after the collection and disbursement of cash, investing excess cash so that it earns interest, raising new capital, handling foreign exchange transactions, and overseeing the firm’s pension fund managers. The treasurer also assists the CFO in handling important Wall Street relationships, such as those with investment bankers and credit rating agencies. The risk manager monitors and manages the firm’s risk exposure in financial and commodity markets and the firm’s relationships with insurance providers. The controller is really the firm’s chief accounting officer. The controller’s staff prepares the financial statements, maintains the firm’s financial and cost accounting systems, prepares the taxes, and works closely with the firm’s external auditors. The internal auditor is responsible for identifying and assessing major risks facing the firm and performing audits in areas where the firm might incur substantial losses. The internal auditor reports to the board of directors as well as the CFO. External Auditors Through this audit, the external auditor comes to a conclusion as t o whether the firm’s financial statements present fairly, in all material respects, the financial position of the firm and results of its activities. In other words, whether the financial numbers are - reasonably accurate, - accounting principles have been consistently applied year to year and do not significantly distort the firm’s performance, and - the accounting principles used conform to those generally accepted by the accounting profession.
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  • Spring '17
  • JANE KDAL

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