Profitcenter

The profit center is an organizational unit of a business, for which a separate period is calculated. The profit center can also arise from a divisional organization out. Responsibility and authority for the product groups are transferred to the divisional managers to a great extent. The divisions are relatively independent units. The division manager plan their businesses within a given maneuver itself, it has its own profit is calculated and used to assess and control the division for each division.

Through these performance-based assessment, the activity of that area can be better controlled and checked for its profitability. While only costs are posted to cost centers, these are compared to a profit center income of the business unit or department. The core idea is therefore that the profit center is like a private business think and act.

In addition to the profit and loss account (abbreviated PCR) as part of the profit center accounting sometimes accounted for at the level of individual profit centers.

In addition to the purpose of the motivation of employees, which are now responsible for their profits and can act entrepreneurially, the profit center costing can be used to distinguish profitable divisions of loss-makers. A breaking-down of earnings contributions from individual employees to find out the ' profit contribution ' of each employee, however, is only possible if the results of a single employee can be acquired ( income and expenses ) and is open in Germany only in accordance with the Works Constitution Act and the Federal Data Protection Act to realize.