Profit Center

A profit center is a division, department, or business unit that generates income or a profit for the business. Typically, companies track profit centers separately for financial performance, measuring both revenues and costs. Monitoring profit centers helps executives understand which parts of the business are most profitable and where to focus resources. Profit centers are contrasted by cost centers, which generate costs for the business without generating income. Finance leaders today are increasingly seeking to shift their departments from being viewed solely as cost centers to being viewed as profit centers.