Chapter 5: The Role of the Finance Function Flashcards
What is the difference between operations and operations management?
Operations are concerned with the acquisition of raw materials whereas operations management is the activities involved in producing and delivering products and services
What are the five responsibilities of finance function has within purchasing?
- Negotiating credit terms with suppliers
- Advise on the best price to pay suppliers
- Make payments
- Order details are shared with finance so they can capture them
- Consult with purchasing on likely budget costs
What are the five responsibilities of finance function has within production?
- Calculate production costs
- Work with operations to determine budgeted costs
- Work with operations to establish a balance between cost and quality
- Assist in identifying inefficiencies and suggest improvements
- Advise on stock levels required to meet demand
What are the five responsibilities of finance function has within sales and marketing?
- Discuss likely sales volume to produce sales budget
- Help set the biggest and monitor the benefit
- Help set the optimum price
- Provide sales volume information to determine market share
- Establish and monitor KPI’s
Define a supply chain.
A network of organisations that provide and process the necessary raw materials first into working progress and then into finish goods for sale and distribution to customer
Define supply chain management.
The coordination of activities from the supplier to the customer
How would a good relationship between the supply chain management and the CFO affect the business?
A good relationship is advantageous for organisational growth and conpetive advantage
What are four opportunities for finance to provide to the supply chain to enhance performance?
- KPI’s (key performance indicator) and performance evaluation
- Stronger alignment with overall strategy
- Data analysis to support decision
- Risk awareness
