profit center

Profit center

A division of an organization held responsible for producing its own profits.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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