Profit the center is an organizational subrange of an enterprise, for which its own period success is determined. Profit the center can develop also from a section organization. Powers of decision and verantwortungs for the product groups in the high measure to the section leaders are transferred. The sections become in such a way relatively independent units. The section leaders plan their business within a given scope of action. If necessary for each section its own profit is determined and consulted for the evaluation and controlling of the section. Then one speaks of a profit center.

Calculation

By means of this profit-oriented evaluation subrange activities can be better steered and be examined for their While on cost centres only costs are booked, these are opposite set to proceeds of the appropriate division and/or the appropriate department to a profit center. The core idea is thus that profit is the center like an independent enterprise to think and act.

Sometimes apart from the production of a profit and a loss calculation in the framework the profit center calculation also a balance is provided on level individual profit center.

The profit center calculation serves for it profitable divisions from Verlustbringern to to differentiate and also the result contributions of the individual coworkers to judge.

See also

Center concept, Cost center, service center

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