Profit centre

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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