Topic: Just for Fun

What Is Cost Centre And Profit Centre

Posted by Anonymous on 50 Points
I am aware the question i am posing is more inclined towards Finance but i guess it is also some how related to Marketing Please help.
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  • Posted by Peter (henna gaijin) on Accepted
    An alternate definition often used is that a "cost center is an accounting term that refers to a department or function in the organization that does not generate profit." (found by Googling "define:Cost Center")

    Profit center, then, would be one that are working directly toward making money for the company.

    In companies, certain groups are traditionally cost centers, like human resources, accounting, legal, etc. These are often called staff positions. They aren't involved directly with making and selling the products that a company makes, but they spend money.

    The opposite would be line positions, which are directly involved with the manufacturing and sales of a product.

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