profit center
Definition
Distinctly identifiable department or unit that contributes to the overall financial results of a firm. Where adequate cost accounting systems are in place, profit centers are given responsibility to target certain percentages of the total revenue and are given adequate authority to control their costs to achieve those targets. See also cost center and revenue center.
profit center is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
profit center appears in the definitions of the following terms: integrated pricing, transfer price, cost center, chargeout, revenue center and portfolio planning matrix
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