Profit centre: Difference between revisions
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imported>Doug Williamson (Clarify that it is treasury authority that is centralised in particular.) |
imported>Doug Williamson (Expand treasury definition and add management accounting definition.) |
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''Corporate treasury''. | 1. ''Corporate treasury''. | ||
A treasury which | 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. | |||
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* [[Hedging]] | * [[Hedging]] | ||
* [[In-house bank]] | * [[In-house bank]] | ||
* [[Management accounting]] | |||
* [[Response to risk]] | |||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
Revision as of 15:09, 1 May 2018
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.
