What is the meaning of Profit Centre, friends, as used in Pricing Decisions and other Costing Chapters
Plz help.
3 Replies
CA SHUBHAM Mittal
(CA )
(441 Points)
Replied 02 July 2010
Profit Centre simply means a unit of organisation in which profit occur on regular basis..................
CA Indu Rani
(CA ,CS Inter,M Com)
(135 Points)
Replied 02 July 2010
Profit centre is separate unit of an organisation for which we calculate profit
(Guest)
Profit centre is a segment of the business by which both revenues are received and expenditure are caused are controlled.
A division of a company which produces and markets the products may be called as "profit Centre"
The Performance of a profit centre is evaluated in terms of the fact whether the centre has achieved its budgeted profits....
In other words.... It is a sub-unit of organization to which both revenues and costs are assigned, so that the responsibility of a sub-unit may be measured...........
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