1) Explain the financial department's organizational chart in a typical organization. What is the key function of each role/position? Explain the difference between the treasury function and the controller function? The organizational chart of a financial department is determined by each company, regardless of whether it is a small, medium or large organization. The organization chart is composed of a chief financial officer (CFO), a vice president, one or more accountants and a budget analyst. The CFO is the head of the financial department. The CFO is responsible for overall planning and guiding the implementation of the plan as it relates to the company's finances. The CFO also works with managers of other branches, including human resources, manufacturing, sales, marketing, production or any other department of the company. The CFO meets with the heads of all these branches to determine planning. Because each branch has needs to support its work and the finance department is responsible for creating, managing and allocating funds from the company budget to meet all these needs. The next department in the organizational chart of a financial department is the vice president. The VP will report directly to the CFO and it is more complicated to work directly with the department's accountants to implement the strategy that the CFO and other department heads have been working on to run the business. The next level is accounting. department. Accountants are those who manage the day-to-day accounting and bookkeeping operations of the business. Accountants must prepare asset, liability and capital account entries by compiling and analyzing account information and also...... middle of paper ...... investment is cost funds used to finance a business. Ultimately, the cost of capital refers to the financing method used, whereby the cost of equity is financed exclusively by equity and the cost of debt is financed exclusively by debt. Many companies have used this tool to finance their business, their overall cost of capital is derived from the weighted average cost of capital (WACC). The company uses the WACC to decide which financial path to take. For example, if a person has $20,000 to capitalize and must choose between stocks A and B, the cost of capital is the dissimilarity in their returns. If this person invests $20,000 in stock A and receives a 7% return, while stock B earns a 9% return, the cost of capital is 2%. The one and only way to theorize the cost of capital is to determine how much money one could have made by making a different investment decision..