Profit center
Profit center is a unit or department that incurs costs and generates revenues.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Profit center. A unit or department that incurs costs and generates revenues.
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Profit center. Responsibility center where the manager is accountable for revenues and costs.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Profit center. A responsibility center in which managers are responsible for both revenues and costs, and therefore profits.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
