A Description Of The Functional Areas That Exist In The Business, And An Explanation Of How They Help The Business To Meet Its Objectives

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, E3 A Description Of The Functional Areas That Exist In The Business, And An Explanation Of How They Help The Business To Meet Its Objectives

Whatever the size of the business – whether it is a sole trader or a public limited company (PLC) – or whatever the product, the factors of production are combined in a variety of functions. These include:

Finance

Production

Human Resources

Marketing and Sales

Administration

Research and Development (R&D)

Finance is the control of money and the recording and reporting of money transactions - a central function in Supervalu.

It is more widely known as The Finance Function, the finance department of a business is responsible for financial record keeping. This involves keeping records either in manual form, or on computer file – of money received and paid out. The financial records maintained would be used to produce the financial statements of the business, which in case of limited companies are required by law. The person who is mainly In charge of this at Supervalu is Paul Hennan the boss, but Charlene the manager also does this. Whenever they are closing up they take the tills down to the cash office and the float so that they can record the earning that day and if the float is under they need to check it again, if it is wrong they need to know why and when this happened so they can record the mistake as to balance the books. The people on the tills also play an important part they have to make sure to charge the right amount and to give the correct change because one penny over or under could result in a lot of time and effort trying to mend the circumstances.

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The theory of production and costs provides an analysis of how price signals should be translated into effective production decisions, so that not only are markets provided with what they demand but also production is by the least cost method.

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