Finance and Other Related Disciplines
Apart from economics and accounting, finance also draws-for its day-to-day decisions — on supportive disciplines such as marketing, production and quantitative methods. For instance, financial managers .should consider the impact of. new product development and promotion plans made in marketing area since their plans will require capital outlays and have an impact on the projected cash flows. Similarly, changes in the production process may necessitate capital expenditures which the financial managers must evaluate and finance. And, finally, the tools of analysis developed in the quantitative methods area are helpful in analyzing complex financial management problems.
The marketing production and quantitative methods are, thus, only indirectly related to day-today decision making by financial managers and are supportive in nature while economics and accounting are the primary disciplines on which the financial manager draws substantially.
The relationship between financial management and supportive disciplines is depicted.