The asset pipeline under a vanilla configuration is just (simplified explanation) going to take all of js files referenced in the manifest (application.js) and create single, minified, obfuscated file for production. In development, if you include the manifest in your page (should be the layout), you'll end up with js script include tags for each asset that the manifest contains.
A common pattern is to put at yield :javascript
block in your layout and then in the individual view, call the javascript function inside of a content_for :javascript do
block.
Best way to add page specific javascript in a Rails 3 app?
A fancier approach would be to conditionally execute js based on the controller and action. Here's how that works: http://viget.com/inspire/extending-paul-irishs-comprehensive-dom-ready-execution