Managers and management accountants have roles and reporting responsibilities within a company’s organization structure. We focus first on broad management functions and then look at how the management accounting and finance functions support managers.
Organizations distinguish between line management and staff management. Line management, such as production, marketing, and distribution management, is directly responsible for achieving the goals of the organization. For example, managers of manufacturing divisions are responsible for meeting particular levels of budgeted operating costs, product quality and safety, and compliance with environmental laws. Similarly, the pediatrics department in a hospital is responsible for quality of service, costs, and patient billings. Staff management, such as management accountants and information technology and human-resources management, provides advice, support, and assistance to line management. A plant manager (a line function) may be responsible for investing in new equipment. A management accountant (a staff function) works as a business partner of the plant manager by preparing detailed operating-cost comparisons of alternative pieces of equipment. Organizations operate in teams of line and staff managers so that all inputs into a decision are available simultaneously.