profit centers

Money-making divisions

A profit center is a division or unit within an organization that generates revenue and is accountable for its own profits and losses.

Companies evaluate profit centers on their financial performance independent of other units: The retail division is our most successful profit center.

The term contrasts with cost centers, which incur expenses but don't directly generate revenue.

Related

subsidiary · division · segment · cash · returns · gains · contribution · financials · financial performance · revenue streams · operating income · income statement · business unit · sales · margin · yields · order · deal

Categories
Opposites
financial contribution

profit centerscost centers

Departments measured by expenses

money pits · administrative functions · loss leaders

Family

profit, center, profits, profited, profiting, profitable, profitability, profitably, unprofitable

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Rated G