Toy World Corporation, renowned for creating enjoyable toys, is listed in Country X. They are venturing...

 

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Toy World Corporation, renowned for creating enjoyable toys, is listed in Country X. They are venturing into a new line of toys that are both fun and educational, with smart, interactive features designed to teach kids. Samuel Lee, the Manager of Capital Expenditure, is keen to demonstrate quick wins from this project. To speed up the launch and show immediate cost savings, he opts for cheaper materials and reduces the time allocated for product testing. With his plans prepared, he approaches the head of his department for approval to proceed with the new line of smart educational toys. (a) Samuel Lee is the Manager of Capital Expenditure. Which department does he work in? (2 marks) (b) Copy the table below onto your answer sheet and fill in blanks i v, providing the names, main responsibilities, and types of financial management decisions for the below three sections within the department where Samuel Lee works, as mentioned in part (a). Sections Main responsibilities Type(s) of Financial Management Decisions Capital Expenditure i. 111. Manages the company's daily cash flow to ensure that there is always enough money on hand for routine operational needs and unforeseen expenses. Capital Budgeting iv. Oversees the assessment and extension of credit to customers, manages risk V. ii. associated with receivables, and is responsible for collecting owed debts. (10 marks) (c) Do Samuel's suggestions to use cheaper materials and reduce testing time necessarily align with the primary goal of financial management? Briefly explain. [Word limit: 100 words] Toy World Corporation, renowned for creating enjoyable toys, is listed in Country X. They are venturing into a new line of toys that are both fun and educational, with smart, interactive features designed to teach kids. Samuel Lee, the Manager of Capital Expenditure, is keen to demonstrate quick wins from this project. To speed up the launch and show immediate cost savings, he opts for cheaper materials and reduces the time allocated for product testing. With his plans prepared, he approaches the head of his department for approval to proceed with the new line of smart educational toys. (a) Samuel Lee is the Manager of Capital Expenditure. Which department does he work in? (2 marks) (b) Copy the table below onto your answer sheet and fill in blanks i v, providing the names, main responsibilities, and types of financial management decisions for the below three sections within the department where Samuel Lee works, as mentioned in part (a). Sections Main responsibilities Type(s) of Financial Management Decisions Capital Expenditure i. 111. Manages the company's daily cash flow to ensure that there is always enough money on hand for routine operational needs and unforeseen expenses. Capital Budgeting iv. Oversees the assessment and extension of credit to customers, manages risk V. ii. associated with receivables, and is responsible for collecting owed debts. (10 marks) (c) Do Samuel's suggestions to use cheaper materials and reduce testing time necessarily align with the primary goal of financial management? Briefly explain. [Word limit: 100 words]