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A profit center is an organization structure such as a subsidiary, department or team that is responsible for revenue and costs.A cost center is an organizational structure that is responsible only for costs.
ExamplesAny team that is responsible for revenue in some way is typically considered a profit center. For example, product owners, sales and marketing teams are profit centers.Cost centers are teams that serve internal customers that do not contribute directly to a firm's revenue. Functions such as human resources, accounting and information technology are typically cost centers. |
| Profit Center | Cost Center | Definition | A department or team that is responsible for revenue and costs. | A department or team that is not directly responsible for revenue. |
Management
This is the complete list of articles we have written about management.
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A guide to management techniques.
A list of techniques for developing and implementing a strategy.
The basics of productivity.
A guide to project management.
The common types of internal benchmarking.
A definition of internal customer with examples.
A definition of business optimization with examples.
The common types of team objective.
A definition of internal stakeholder with examples.
An overview of the different types of management planning.
A definition of management with examples.
A list of management accounting examples.
A management approach that examines the constraints that are holding an organization back.
A definition of target costing with examples.
A definition of continuous improvement with examples.
An overview of takt time with calculation formula and example.
The difference between lead time and cycle time explained with an example.
How to calculate productivity with 3 examples.
A definition of complexity cost with examples.
The definition of run rate with calculation examples.
The definition of managerial economics with examples.
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