Profit centre: Difference between revisions

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''Corporate treasury''.
1. ''Corporate treasury''.


A treasury which may actively create market positions with a view to earning profits, as well as hedging.
A profit centre treasury is one which is authorised to actively create market positions with a view to earning profits, as well as hedging.
 
Profit centre treasuries are normally associated with a high degree of centralisation of treasury authority, compared with treasuries organised as cost centres, or cost saving centres.
 
 
2. ''Management accounting''.
 
More broadly, a profit centre is any part of an organisation to which revenues and costs may be allocated for accounting purposes, resulting in the calculation of a profit or loss for the profit centre.




== See also ==
== See also ==
* [[Centralised]]
* [[Cost centre]]
* [[Cost centre]]
* [[Cost saving centre]]
* [[Cost saving centre]]
* [[Hedging]]
* [[Hedging]]
* [[In-house bank]]
* [[Management accounting]]
* [[Response to risk]]
* [[Treasury organisation]]


[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Treasury_operations_infrastructure]]

Latest revision as of 17:00, 14 October 2020

1. Corporate treasury.

A profit centre treasury is one which is authorised to actively create market positions with a view to earning profits, as well as hedging.

Profit centre treasuries are normally associated with a high degree of centralisation of treasury authority, compared with treasuries organised as cost centres, or cost saving centres.


2. Management accounting.

More broadly, a profit centre is any part of an organisation to which revenues and costs may be allocated for accounting purposes, resulting in the calculation of a profit or loss for the profit centre.


See also