ABSTRACT
The financial planning and control function in an organization has the main objective of assisting its management. Planning the action which is to be taken during a specified period of time is the second of the management activities listed earlier as likely to benefit particularly from the financial planning and control function. Planning of this type is much more detailed than the decision-making first described. In attempting to assist managers in these areas, the financial planning and control function has developed an impressive kit of tools. Discounted cash flow, as the name implies, focuses on the cash consequences of radical change. Marginal costing in practice has always been fraught with difficulties. Transfer pricing problems can also arise in practice in the area of decision-making, where the system used to measure performance can give rise to unwise decisions, especially of the kind which involves weighing up whether or not to trade within the organization.
