Profit Center
Essay by 24 • January 24, 2011 • 332 Words (2 Pages) • 1,568 Views
INCREAS PROFITABILITY OF BRANCH
profit center
Definition
A business unit or department which is treated as a distinct entity enabling revenues and expenses to be determined so that profitability can be measured.
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.
business
Definition
A commercial activity engaged in as a means of livelihood or profit, or an entity which engages in such activities.
profit
Definition
The positive gain from an investment or business operation after subtracting for all expenses. opposite of loss.
operation
Definition
A business, unit or function within a company.
expense
Definition
Any cost of doing business resulting from revenue-generating activities.
loss
Definition 1
A reduction in the value of an investment.
Definition 2
A condition in which a company's expenses exceed its revenues. opposite of profit.
cost center
Definition 1
Defined geographical area, machine, or person to whom direct and indirect costs are allocated.
Definition
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