Abstract

AnandVihar Food Processing Limited (AVFP) is in the business of exporting processed poultry meat to Oman, the Maldives, and Japan. After discussions with the Marketing department on the company’s progress in terms of achievement of export targets during the third quarter of the financial year 2019-20, the top management wanted to revise the export targets for the last quarter of the fiscal year. Based on the instructions of the top management, the Marketing department revised its requirement to achieve the set targets and sent communications to each department associated with it. Each department in turn sent its requirement for the financial approvals to the accounts department. The present case study provides the scope for a discussion on the process of financial decision making and the role of the accounting process in providing the requisite financial information for each department.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The importance of the financial decision making process
• The role of accounting in facilitating the decision-making process
• How various functional departments are connected with the accounting department in the decision-making process
• How accounting serves as a basis for the financial decision-making process

Keywords

Accounting; Accounting principles; Accounting Process; Decision making; Budgets; Accounting Department; Accounts Manager; Profit and loss account; balance sheet