Managerial Accounting in the Management Process

The departments in a company can be viewed as having either of the following:
1. Line responsibilities
2. Staff responsibilities

1.A line department is directly involved in providing goods or services to the customers
of the company.

Example:
1. Senior Vice President—Equipment
2. Plant Manager—Chicopee, MA Plant
3. Senior Vice President—Callaway Brand
4. Managing Director, Callaway Golf Europe

2.A staff department provides services, assistance, and advice to the departments with
line or other staff responsibilities. A staff department has no direct authority over a line
department.

Example:
1. Senior Vice President—Chief Administrative Officer
2. Vice President, Human Resources
3. Chief Financial Officer
4. Controller


The management process has the following five basic phases

1.Planning
2. Directing
3. Controlling
4. Improving
5. Decision making

Reference:
MANAGERIAL ACCOUNTING 10 edition
by Carl S. Warren,James M. Reeve and Jonathan E. Duchac

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