Difference between revisions of "Profit center"
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According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | ||
:[[Profit center]]. Responsibility center where the manager is accountable for revenues and costs. | :[[Profit center]]. Responsibility center where the manager is accountable for revenues and costs. | ||
| + | According to [[Managerial Accounting by Braun, Tietz (5th edition)]], | ||
| + | :[[Profit center]]. A responsibility center in which managers are responsible for both revenues and costs, and therefore profits. | ||
==Related concepts== | ==Related concepts== | ||
Latest revision as of 13:37, 15 July 2020
Profit center is a unit or department that incurs costs and generates revenues.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Profit center. A unit or department that incurs costs and generates revenues.
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Profit center. Responsibility center where the manager is accountable for revenues and costs.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Profit center. A responsibility center in which managers are responsible for both revenues and costs, and therefore profits.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
