Definitions: Profit, Cost, and Investment Center
Explore the roles and dynamics of profit, cost, and investment centers within a company. Understand how these centers differ in generating revenue, controlling expenses, and investing for future gains, and how perceptions affect their management and political interactions.
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Profit centers
Profit centers bring in money to the company. There is no limit to how much they can bring in; however, their outcomes are not always within their control (e.g., due to the economy and competitive landscape).
Cost centers
Cost centers spend the company’s money as efficiently as possible. The maximum ...