What role does session_start() play in managing SESSION variables in PHP and what are the potential consequences of its placement in the code?

The session_start() function is essential in managing SESSION variables in PHP as it initializes a new session or resumes an existing one. It should be placed at the beginning of the code before any output is sent to the browser to ensure proper session management. Placing session_start() after any output has been sent can result in headers already being sent error.

<?php
session_start();

// Rest of the PHP code goes here
?>