difference b/w profit center & profitability analysis?
Answers were Sorted based on User's Feedback
Profit Center means ascertaining the profitability of
particular business segment (Profit Center)
Whereas
PA is used to know the financial position of whole
organisation in the market.
Is This Answer Correct ? | 5 Yes | 0 No |
Answer / aruna
Profit Center:
Profit Center fix the responsiblity within the company like
Business area / Strategic units etc. Gives the revenue
reporting as per the organisational structure.
concentrate on revenue which is generated by the profit
center.
Profitablity analysis:
Give the profiability of the organisation according to
products, customers, orders or the combination of the
above.
concentrate on Profit margin.
Is This Answer Correct ? | 5 Yes | 0 No |
Answer / mashu
Hi Murali
They have asked about Profit Center & Profitability
Analysis.
OK Not about Business area and Profit Cneter
Is This Answer Correct ? | 4 Yes | 0 No |
Answer / murali
Business area is where the total business is valuated as a
whole
Whereas Profit centre is an area where the company/work
place allows the outside agency to use its machinery for
external profits (eq: A CNC machiine which can run 24 hrs a
day is utilised in our company for 15 hrs and the balance 9
hrs is let out for addition to the company's profit) is
known as Profit Centre.
Is This Answer Correct ? | 1 Yes | 3 No |
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