Mgm 507 Db2
Mgm 507 Db2Phase1 Discussion Board Post
Colorado Technical University Online
August 16, 2011
Managerial finance includes a general outlook on the guiding principle and measures that correlate with corporate finance and management accounting. This form of finance focal points are assessment rather than on technique. Using adequate control of financial resources within a company or institute will provide that finical manger the ability to use those resources wisely. According to Lawrence Gitman, the responsibility of managerial finance is rest on the shoulders of the financial manager. Financial managers of an organization the duties and responsibility will include administrate economic functions throughout various forms of business.
As stated above this form of financing is broken into two sections corporate finance and management accounting. Corporate finance involves planning financial issues and managing capital, future investments of the organization, how much of the profits shareholders shall receive, and finally is worth acquiring or merging with another firm (QuickMBA, 2011). Managerial accounting offers data to those who are directly in control of their companies venture (Accounting for Management, 2011). This section also centers on providing management with the kind of number to make good decisions for the company.
An example of managerial financial would be a regional sales manager within a company structure who held accountable or the assets allocated to the region are used in the sales process. The manager use of funds set aside for promotional activities such as participating in trade shoes, local chamber events, or even the creation of sales collateral for distribution to prospective clients.
Managers also focus on the need to look at allocation of resources within an organization. Managers are what each activity costs and why. This requires managerial accounting techniques such as activity based costing. Managers also need to...