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How Is Cost Center Accounting Related To Profit Center? |
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Answer» In the master data of the Cost Center there is a provision to ENTER the PROFIT center. This way all costs which flow to the cost center are also captured in the profit center. Cost centers are basically created to capture costs e.g. admin cost center, canteen cost center etc. Profit centers are created to capture cost and revenue for a particular plant, business UNIT or product LINE. In the master data of the Cost Center there is a provision to enter the profit center. This way all costs which flow to the cost center are also captured in the profit center. Cost centers are basically created to capture costs e.g. admin cost center, canteen cost center etc. Profit centers are created to capture cost and revenue for a particular plant, business unit or product line. |
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