Difference between revisions of "Profit center"

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According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]],
 
According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]],
 
:[[Profit center]]. Responsibility center where the manager is accountable for revenues and costs.
 
:[[Profit center]]. Responsibility center where the manager is accountable for revenues and costs.
 +
According to [[Managerial Accounting by Braun, Tietz (5th edition)]],
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:[[Profit center]]. A responsibility center in which managers are responsible for both revenues and costs, and therefore profits.
  
 
==Related concepts==
 
==Related concepts==

Latest revision as of 13:37, 15 July 2020

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

Related lectures