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Glossary
Glossary | P | What is profit center

What is Profit Center?

A profit center is the work station and the part of an organization that counts and deals with revenues and profitability. It is a branch or a department within an organization that is dedicated to the employees who are hired for the profit calculation.

The profit center department is sole responsible for spawning their own results and wages. The department has managers who have the authority to make several decisions like operating expenses and product pricing.

Profit centers determine that which units are most and least revenue generating units in an organization.

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