profit centre


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Related to profit centre: investment centre

profit centre

an organizational subunit of a firm given responsibility for minimizing COSTS and maximizing REVENUE within its limited sphere of operations. Profit centres facilitate management control by helping to ascertain a unit's performance and profitability. Profit centres are, in effect, independent business units controlled by a local manager and financed by the parent company. See also COST CENTRE, INVESTMENT CENTRE.

profit centre

an organizational subunit of a firm that is given responsibility for minimizing operating COSTS and maximizing REVENUE within its limited sphere of operations. Profit centres facilitate management control by helping to ascertain a unit's performance and profitability See also COST CENTRE, INVESTMENT CENTRE.