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Finance, Accounting and HR Departments | ICSE Class 9

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Commercial StudiesICSE Class 9 · Departments of a Commercial Organisation

Finance and Accounting and Human Resources Departments and Coordination (ICSE Class 9 Commercial Studies)

Updated 17 October 2026 · Fact-checked

The finance and accounting department estimates the funds needed, raises and uses them wisely, and keeps systematic records to find profit or loss and financial position. The human resources department plans, recruits, trains, pays, motivates and looks after employees. Departments are interdependent, so they must coordinate, for example marketing's forecast guides production and finance funds all.

Notice that every department links to the centre: finance funds all, HR supplies people, and marketing's forecast guides production.

Illustration drawn for QuestionBuddy.

Understand Finance and Accounting and Human Resources Departments and Coordination

Finance and accounting department. Responsible for estimating money needed, raising it from suitable sources, using it wisely and keeping records of financial transactions.
Finance side: estimating fixed and working capital, raising funds (owners' capital, loans, shares), investing, managing cash, budgeting.
Accounting side: recording transactions, preparing accounts and statements, paying taxes, internal checks and audit.
Objectives: estimate funds for fixed assets and day-to-day operations; raise funds at the lowest cost; best use of funds, avoiding shortage and idle cash (liquidity); maximise profit and owners' wealth; keep accurate records; find profit or loss and financial position at period end; supply information to management, owners, lenders and the government and comply with tax laws.

Human resources (HR) department. Manages people: planning numbers and kinds needed, recruiting and selecting, training and developing, paying and motivating, and maintaining relations and welfare.
Activities: manpower planning, recruitment and selection, induction and training, performance appraisal, wage and salary administration, promotions and transfers, welfare and safety, records, grievances and industrial relations.
Objectives: right people, right number, right time, right jobs; develop skills through training; motivate by fair pay, incentives and recognition; good relations and grievance handling; welfare, safe conditions and labour-law compliance; reduce absenteeism and labour turnover; personal growth with organisational goals.
Labour turnover rate = number of employees who left ÷ average number of employees × 100.

Coordination among departments.
1. Marketing forecasts demand; production plans output.
2. Production needs funds from finance; finance needs sales revenue from marketing.
3. All departments need staff from HR; HR needs the budget from finance.
4. Accounting records production costs and sales and reports back to all.
Example: if marketing plans a festive offer without telling production, shelves may be empty; if production overproduces, unsold stock ties up finance.

Funding example. A business needing Rs 10,00,000 where the owner brings Rs 6,00,000 must raise Rs 4,00,000 by a loan or other source.

Draw-and-label checklist. A four-box chart with two-way arrows showing coordination.

Finance and Accounting and Human Resources Departments and Coordination: key facts

Funds to raise
  • Funds to raise = total funds needed
  • minus owner's capital
  • Balance from loans or other sources
Finance function.
Labour turnover rate
  • Labour turnover (%) = employees who left
  • divided by average employees
  • times 100
HR measure.
Profit or loss
  • Profit = revenue
  • minus total costs
  • Found by accounting
Record-keeping objective.

Finance and Accounting and Human Resources Departments and Coordination in real life

The idea, met in an everyday situation. Answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

Starting a cloud kitchen

Suppose a founder needs Rs 8,00,000 for equipment and stock, has Rs 5,00,000 and takes a loan for the rest, then hires four cooks and trains them.

Which departments handle what, and how much is borrowed?

Try it first, then show the solutionSolution
  1. Finance raises 8,00,000 − 5,00,000 = Rs 3,00,000 by a loan.
  2. HR recruits and trains the cooks.

Answer: Finance: Rs 3,00,000 loan; HR: hiring and training.

Memory hook: Money and people.

Staff leaving a call centre

Suppose a call centre with 200 staff loses 30 in a year because of poor pay and stress.

Find the turnover rate and name the department that should act.

Try it first, then show the solutionSolution
  1. Turnover = 30 ÷ 200 × 100 = 15%.
  2. HR should act through better pay, motivation and welfare.

Answer: 15%; HR department.

Memory hook: Leavers over average.

Tricks to remember Finance and Accounting and Human Resources Departments and Coordination

Short memory aids. Say each one aloud once, then use it on a question the same day.

  • Finance: estimate, raise, use, record

    Four verbs for finance and accounting.

    Use it when: Meaning.

  • Right people, right place, right time

    HR's first objective.

    Use it when: HR.

  • Revenue comes from sales, funds go to all

    Finance and marketing are linked.

    Use it when: Coordination.

Finance and Accounting and Human Resources Departments and Coordination: solved examples

Ordered from board level to HOTS. Try each one before you open the solution.

Example 1: Which department · 1 mark · MCQBoard level

Keeping systematic records of all financial transactions is an objective of the:
(a) human resources department (b) marketing department (c) production department (d) finance and accounting department

Try it first, then show the solutionSolution
  1. Record-keeping belongs to finance and accounting.

Answer: (d) finance and accounting department.

Example 2: Raising funds · 3 marks · Short answerHarder board level

A workshop needs Rs 14,00,000: Rs 9,00,000 for machines and the rest for working capital. The owner brings Rs 8,50,000. (a) Find the working capital need. (b) Find the funds to be raised. (c) Name the department and one objective served.

Try it first, then show the solutionSolution
  1. (a) Working capital = 14,00,000 − 9,00,000 = Rs 5,00,000 (1 mark).
  2. (b) To raise = 14,00,000 − 8,50,000 = Rs 5,50,000 (1 mark).
  3. (c) Finance; it estimates funds and raises them at the lowest cost (1 mark).

Answer: (a) Rs 5,00,000. (b) Rs 5,50,000. (c) Finance.

Example 3: Labour turnover · 4 marks · Case-basedHOTS / competency

A garment factory had 240 employees at the start of the year and 260 at the end; 35 workers left during the year. (a) Find the average number. (b) Find the labour turnover rate. (c) Suggest two HR steps to reduce it.

Try it first, then show the solutionSolution
  1. (a) Average = (240 + 260) ÷ 2 = 250 (1 mark).
  2. (b) Rate = 35 ÷ 250 × 100 = 14% (1 mark).
  3. (c) Fair pay and incentives (1 mark).
  4. (c) Welfare, safe conditions and grievance handling (1 mark).

Answer: (a) 250. (b) 14%. (c) Pay and incentives; welfare and grievance handling.

Example 4: Coordination breakdown · 3 marks · Short answerHarder board level

Marketing runs a big sale offer without telling production, finance or HR. Show three problems that follow and the department affected.

Try it first, then show the solutionSolution
  1. Production cannot supply the extra goods in time (1 mark).
  2. Finance has no funds arranged for extra materials (1 mark).
  3. HR has not arranged extra staff or overtime (1 mark).

Answer: Production shortage; finance funds missing; HR staff missing.

Example 5: HR objectives · 3 marks · Short answerBoard level

State and explain three objectives of the human resources department.

Try it first, then show the solutionSolution
  1. Right people in the right jobs at the right time (1 mark).
  2. Train and develop skills (1 mark).
  3. Motivate and maintain good relations and welfare (1 mark).

Answer: Right staffing, training, motivation and welfare.

Where students lose marks in Finance and Accounting and Human Resources Departments and Coordination

The slips examiners see most often, and what to write instead.

  • Mistake: Using the closing number of staff instead of the average for turnover

    Turnover uses average employees.

    Wrong working

    35 ÷ 260 × 100.

    Right working

    35 ÷ 250 × 100 = 14%.

    Do this: Average = (opening + closing) ÷ 2.

    Usually costs: 1 mark.

  • Mistake: Giving HR the work of paying taxes

    Tax payment and records belong to accounting.

    Do this: People matters to HR; money matters to finance.

    Usually costs: 1 mark.

  • Mistake: Writing coordination examples with one department only

    Coordination needs at least two.

    Do this: Name both departments.

    Usually costs: 1 mark.

Exam tips

  • State the meaning in one sentence and then objectives.
  • Show turnover working with average staff.
  • Link departments with real examples.
  • Separate finance (funds) from accounting (records).

Practice questions on Finance and Accounting and Human Resources Departments and Coordination

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

  1. Q1 · 1 mark · MCQBoard level

    Recruitment, training and welfare are functions of the:
    (a) production department (b) HR department (c) accounts section (d) sales section

    Hint

    People.

    Answer

    (b) HR department.

  2. Q2 · 4 marks · Short answerBoard level

    State two objectives of the finance function and two of the accounting function.

    Hint

    Raise funds; keep records.

    Answer

    Finance: estimate funds required; raise funds at the lowest cost. Accounting: keep proper records of transactions; find profit or loss and financial position.

  3. Q3 · 3 marks · Short answerHarder board level

    A shop had 120 staff on 1 April and 80 on 31 March the next year, and 25 of them left during the year. Find the average staff and the turnover rate.

    Hint

    (120 + 80) ÷ 2.

    Answer

    Average = (120 + 80) ÷ 2 = 100; turnover = 25 ÷ 100 × 100 = 25%.

  4. Q4 · 3 marks · Short answerHarder board level

    A shop's yearly sales are Rs 7,50,000 and its costs are Rs 7,95,000. Find the result, and name two objectives of the finance and accounting department it relates to.

    Hint

    Cost exceeds revenue.

    Answer

    Result = 7,50,000 − 7,95,000 = loss of Rs 45,000. It relates to finding the profit or loss at period end and giving financial information to management and owners.

  5. Q5 · 3 marks · Case-basedHOTS / competency

    Read and answer.
    Suppose a bakery plans to double output for a festival. (a) What must marketing tell production? (1) (b) What must finance arrange? (1) (c) What must HR arrange? (1)

    Hint

    Forecast, funds, staff.

    Answer

    (a) The demand forecast and timing. (b) Funds for extra materials and wages. (c) Extra staff or overtime and training.

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

  1. 1.What is labour turnover?Show answer

    The rate at which employees leave.

  2. 2.Which department raises funds?Show answer

    Finance.

  3. 3.What is liquidity?Show answer

    Having enough ready money for needs.

  4. 4.What does HR stand for?Show answer

    Human resources.

  5. 5.What does induction mean?Show answer

    Introducing new employees to the firm.

Finance and Accounting and Human Resources Departments and Coordination: frequently asked questions

Is accounting part of finance?

They form one department in the syllabus.

Who trains employees?

The HR department.

Why avoid idle cash?

Idle cash earns nothing.

Do departments depend on each other?

Yes, they are interdependent.