What do you mean by Profit Centre?

The Meaning and Definition of Profit Centre. (Cost Accounting)

A profit centre is that segment of activity of a business which is responsible for both revenue and expenses and discloses profits of a particular segment of activity.

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Generally, profit centres are created to delegate responsibility to individuals and measure their performances. There may be number of cost centres in a profit centre. Thus all cost centres are not profit centres, but all profit centres are cost centres.

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