Question

What is the responsibility of the financial manager in the allocation of fund decisions?

a.

To maximize returns for the enterprise

b.

To identify situations requiring more funds and ensure effective use of funds to generate income greater than the cost of capital

c.

To maintain financial records

d.

To prepare financial statements

Posted under IC 89 Management Accounting

Answer: (b).To identify situations requiring more funds and ensure effective use of funds to generate income greater than the cost of capital Explanation:The financial manager is responsible for effective use of funds in such a manner that all funds generate income more than the cost of capital at which funds are procured.

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