The following describes the job responsibilities of two employees of Sparrow Manufacturing. Joan Dennison, Cost Accounting Manager.
Question:
Joan Dennison, Cost Accounting Manager. Joan is responsible for measuring and collecting costs associated with the manufacture of the garden hose product line. She is also responsible for preparing periodic reports that compare the actual costs with planned costs. These reports are provided to the production line managers and the plant manager. Joan helps to explain and interpret the reports.
Steven Swasey, Production Manager. Steven is responsible for the manufacture of the high- quality garden hose. He supervises the line workers, helps to develop the production schedule, and is responsible for seeing that production quotas are met. He is also held accountable for controlling manufacturing costs.
Required:
1. Identify Joan and Steven as line or staff and explain your reasons.
2. Explain the differences between line and staff functions in a manner that will have universal applicability.
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Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
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