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Cost Center: A cost center is responsible only for costs and expenses incurred in operational activiteis of the department and is not responsible for generating revenues and profitability. For example a warehouse of distribution company is not responsible to sales th product and generate sales revenues. Their responsibility is limited to receive, store and ship goods in the most cost effective manner.
Profit Center: A Profit Center is responsible for both generating revenues and incurring expenses in normal course of business. A profit center is responsibe for profitability of the department. Like if a company is having sales offices in different provinces or countries, both are responsible to increase sales at least cost. Both are profit centers.
Such a business Structure in which each buisness manufcturing unit is responsible for all its unit's cost and Profit.ie How much a business unit incurred a cost and how much it earns profit
cost center is responsible for controlling cost in department that generates little bit or no revenue.
profit center is resposible for both cost and revenue since profit is function cost and revenue
there are many kindes of centers
1- revenue center
2- cost center
3- profit center
4- investment center
5- service center
you want to know cost center &profit center
cost center : is the center which take costs without generating revenue ( such as R&D section )
profit center : is center which generate revenue and take cost ( such as branch of resturants company )