Review of Cost + Profit Centres
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Cost centre - an identifiable part of an organisation for which costs can be calculated.
Examples include 'personnel', and IT. Departments which costs can be calculated do not create revenue and do not charge other departments for their services are included in this heading.
Profit centre - an identifiable part of an organisation for which costs & revenue (and therefore profit) can be calculated.
Examples include a branch of a chain of stores or a specific product. Sales are easy to calculate and it is possible to calculate costs and profit.
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