profit 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.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005