InterviewSolution
Saved Bookmarks
InterviewSolution
| 1. |
What Is The Difference Between A Cost Center And A Profit Center? |
|
Answer» A cost center is a SUBUNIT of a company that is responsible only for its costs. Example of cost centers are the PRODUCTION departments and the SERVICE departments within a factory and administrative departments such as IT and accounting. A profit center is a subunit of a company that is responsible for revenues and costs. Often a division of a company is a profit center because it has CONTROL over its revenues, costs, and the resulting profits. A cost center is a subunit of a company that is responsible only for its costs. Example of cost centers are the production departments and the service departments within a factory and administrative departments such as IT and accounting. A profit center is a subunit of a company that is responsible for revenues and costs. Often a division of a company is a profit center because it has control over its revenues, costs, and the resulting profits. |
|