Profit centre: Difference between revisions
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* [[Management accounting]] | * [[Management accounting]] | ||
* [[Response to risk]] | * [[Response to risk]] | ||
* [[Treasury organisation]] | |||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
[[Category:Treasury_operations_infrastructure]] | [[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.
