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How Is ‘profit Center Accounting’ (ec-pca) Different From Co-pa? |
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Answer» Unlike CO-PA where the focus is on external market segments’ profitability, ‘PROFIT Center Accounting’ (EC-PCA) focuses on profitability of internal areas (profit centers) of the ENTERPRISE. Profit center accounting is used to draw internal balance sheets and profit & loss statements. You may use EC-PCA in place of business AREA accounting. Both CO-PA and EC-PCA serve different PURPOSES, and are not mutually exclusive. You may NEED them both in your organization. Unlike CO-PA where the focus is on external market segments’ profitability, ‘Profit Center Accounting’ (EC-PCA) focuses on profitability of internal areas (profit centers) of the enterprise. Profit center accounting is used to draw internal balance sheets and profit & loss statements. You may use EC-PCA in place of business area accounting. Both CO-PA and EC-PCA serve different purposes, and are not mutually exclusive. You may need them both in your organization. |
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