Profit Center, Cost Center
Let's explore the main differences between profit centers and cost centers.
We'll cover the following...
We'll cover the following...
Budgets
Profit center “budgets” are “revenue budgets,” meaning they are on the hook to make a certain amount according to that year’s plan. Profit centers think about growth and what could go right.
Cost center budgets are what we normal human beings call budgets- an amount of money set aside that you are cleared to spend. Cost centers think about efficiency and what could go wrong.