Business & ManagementIB

Cost and profit centres

Cost and profit centres...The main difference between the two is that a cost center is only responsible for its costs, while a profit center is responsible for both its revenues and costs...
Cost and profit centres

Cost centre: a unit of a business that incurs costs but does not make any profit. These costs are clearly attributed to the activities of that department.

Profit centre: a unit of a business that incurs both costs and revenues.

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