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Re: Cost center & profit center ...

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Hi,

A cost center is a unit or department within an organization, or a major activity, or sub-unit within a unit or department distinguished by its area of responsibility, location, or accounting methods where it is responsible for cost spendings  like production department/marketing department or responsible for procurement of non-stock/non-valauted material or procurement  servcie

 

But Profit Centre is Autonomous Business Unit responsible for cost as well as revenue.In other term profit center in which data from cost centers are collected, which cannot be properly assigned to a "real" profit center and then data must be assessed or distributed in Profit Center Accounting which can not passed on to other CO components

 

Regards,

Biju K


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