Chapter B, Problem B1.2MBD

Explanation of Solution

Business departments:

• Accounting:
  • It provides numerical data about business finances.
  • It records, measures and describes financial information.
  • The responsibilities of accounting department includes:
    • Accounts payable:
      • It keeps eye on money saving opportunities.
    • Accounts receivable:
      • It tracks receivables, includes invoices and collection actions.
    • Payroll:
      • It makes sure all employees are getting paid properly.
    • Financial statements:
      • It prepares financial reports that could be used for budgeting, forecasting as well as other decisions.
• Finance:
  • It deals with deliberate financial issues related with growing business value.
  • It observes laws that are applicable as well as social responsibilities.
  • The responsibilities of finance department includes:
    • Bookkeeping:
      • It involves daily recording, analysis, interpretation of financial transaction of company.
      • It includes tracking of all expenses as well as sales of finished products.
    • Management of company’s cash flow:
      • It manages all cash flows in company and ensures that enough funds are available for day to day needs.
      • It ensures vendors and creditors are paid correctly on time.
• Human resources:
  • It effectively accomplishes employees in an organization.
  • It includes plans, policies and procedures for its management.
  • It identifies hiring need, develops a recruitment plan, organizational chart and other documents.
  • It reviews position description and assigns job classification...