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Question
difference b/w profit center & profitability analysis?
 Question Submitted By :: FI-CO
I also faced this Question!!     Answer Posted By  
 
Answer
# 1
Profit Center means ascertaining the profitability of
particular business segment (Profit Center)

Whereas

PA is used to know the financial position of whole
organisation in the market.
 
Is This Answer Correct ?    4 Yes 0 No
Pradeep Patil
 
Answer
# 2
Profit Center:
Profit Center fix the responsiblity within the company like
Business area / Strategic units etc. Gives the revenue
reporting as per the organisational structure.
concentrate on revenue which is generated by the profit
center.

Profitablity analysis:
Give the profiability of the organisation according to
products, customers, orders or the combination of the
above.
concentrate on Profit margin.
 
Is This Answer Correct ?    4 Yes 0 No
Aruna
 
 
 
Answer
# 3
Hi Murali
They have asked about Profit Center & Profitability
Analysis.
OK Not about Business area and Profit Cneter
 
Is This Answer Correct ?    3 Yes 0 No
Mashu
 
Answer
# 4
Business area is where the total business is valuated as a
whole
Whereas Profit centre is an area where the company/work
place allows the outside agency to use its machinery for
external profits (eq: A CNC machiine which can run 24 hrs a
day is utilised in our company for 15 hrs and the balance 9
hrs is let out for addition to the company's profit) is
known as Profit Centre.
 
Is This Answer Correct ?    1 Yes 3 No
Murali
 

 
 
 
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