How does working capital management affect the financial success of the organisation?
Financial management can thus be viewed as the process of developing a long term perspective on the funding and management of funds for all organisations. The longer term strategic emphasis contrasts, perhaps, with the traditionally perceived role of the management accountant. The traditional view of the management accountant has been as the person responsible for ensuring that systems are put in place and information provided to management, which serves to ensure the attainment of longer term financial objectives. The dividing line between financial management and management accounting, at least in the context of paper 8, is best understood by way of an example. The syllabus contains a section on financial objectives, which requires candidates to understand the nature and type of financial objectives which might be pursued by both profit and non-profit seeking organisations. In defining objectives, for example, the maximisation of growth of earnings per share, an organisation is makin
