financial management is interrelated with other areas. The relation between Financial management with other areas can be defined as follow:
#1. FM and Economics
Economic concept like micro and macro economics re directly applied with the FM approaches. Investment decisions, micro and macro environmental factors are closely associated with the functions of financial manager. FM also uses the economic equations like money value discount factor, economic order quantity etc. financial economics is one of the emerging area, which provides immense opportunities to finance and economical areas.
#2. FM and Accounting
Accounting records includes the financial information of the business concern. Hence, we can easily understand the relationship between the FM and accounting. In the olden periods both FM and accounting are treated as a same discipline and then it has been merged as management accounting because this part is very much helpful to finance manager to take decisions. But nowadays FM and Accounting discipline are separate and interrelated.
Modern approaches of the FM applied large number of mathematical and statistical tools and techniques. They are also Called as econometrics. Economic order quantity, discount factor, time value of money, cost of capital, capital structure theories, dividend theories, ratio analysis and working capital analysis are used as mathematical and statistical tools and techniques in the field of FM.
Need More Information??
If you want more information or any professional advise. We not only give guidance but also for support and suggestions to you.
freely you can contact us:
Phone: +91 958-740-6557 (India)
email address: CuteVamp911@gmail.com