profit center

profit center definition - business

profit center

A segment of a business for which costs, revenues, and profits are separately calculated, with the manager of the segment being responsible for and judged on the performance of that segment. For example, a large corporation with diversified interests in paper manufacturing, trucking, and fast food may regard each of these three businesses as a profit center.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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