Hi 

Does not know much on profit centre accounting, but little 
bit knowledge.
Standard hierarchy is like a organsiation structure which 
would have profit centres groups and profit centres mapped 
each group and inturn group is mapped to higher level.

Standard Hierarchy is the top node of the group company. 

We can create all company's profit center under this 
hierarchy. We can compare company's profit center analysis  
report.  Each profit center linked with the Standard 
hierarchy, otherwise we can not call the individual profit 
center at the time.

standard hierarchy:client-->operating concern-->company---
>controlling area--->company code--->business area.