[Verse 1] Division managers hold the keys to dual command Revenue streams and cost control, both in their hands Not just expense watchers counting every dime They build the top line while managing the grind Transfer pricing negotiations between internal teams Market rates or cost-plus methods, nothing's quite what it seems [Chorus] Profit centers, dual responsibility Revenue up, costs down, maximum efficiency P-R-O-F-I-T spells the game they play Controllable margins measured every day Profit centers, where the buck stops here Performance metrics crystal clear [Verse 2] Segment reporting breaks the business into parts Each division's contribution, that's where measurement starts Controllable versus non-controllable costs divide the score Allocated overhead shouldn't penalize what they can't control or explore ROI and residual income paint the picture true Which divisions create value, which need reviewing too [Chorus] Profit centers, dual responsibility Revenue up, costs down, maximum efficiency P-R-O-F-I-T spells the game they play Controllable margins measured every day Profit centers, where the buck stops here Performance metrics crystal clear [Bridge] Transfer pricing sets the stage for internal trade Arm's length principle keeps the game fairly played Full cost, variable cost, or market price debate Each method changes how the profits calculate Behavioral implications drive the choice we make Suboptimization risks are always at stake [Verse 3] Balanced scorecards look beyond the dollar signs Customer satisfaction, growth, and process design Leading indicators predict tomorrow's gains While lagging measures show if profit still remains Benchmarking against competitors reveals the competitive stance Variance analysis gives performance a second glance [Chorus] Profit centers, dual responsibility Revenue up, costs down, maximum efficiency P-R-O-F-I-T spells the game they play Controllable margins measured every day Profit centers, where the buck stops here Performance metrics crystal clear [Outro] Responsibility accounting draws the lines Between what managers control and what's by design Profit centers bridge the gap 'tween cost and revenue dreams Making every dollar count in the accounting schemes
← Cost Centers and Responsibility Accounting | Investment Centers and ROI Analysis →