profit center

Profit Center

The branch or division of a company that creates profits individually and separately from the main organization.

Notes:

The profit center's revenues and expenses are held separate from the main company's in order to determine their profitability.

See also: Conglomerate, Expenses, Revenue

---

Profit center

A division of an organization held responsible for producing its own profits.

---

profit center

A segment of a business for which costs, revenues, and profits are separately calculated, with the manager of the segment being responsible for and judged on the performance of that segment. A large corporation with diversified interests in paper manufacturing, trucking, and fast food may regard each of these three businesses as a profit center.