In the recent times, business units lay more emphasis on undertaking competent strategic and policy framework with the motive to make optimum use of funds. Moreover, without having wide framework business unit faces difficulty in getting desired level of outcome or success. Now, several tools & techniques are available which firm can use before taking decision pertaining to investment and financing decision. The present report is based on different case situation which will develop understanding about the concept of management and financial accounting. Further, it will shed light on the aspects on the basis of which management accounting differs from financial. Along with this, report will exhibit how concept pertaining to ratio analysis and capital budgeting aid in decision making.