difference b/w profit center & profitability analysis?

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difference b/w profit center & profitability analysis?..

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.

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difference b/w profit center & profitability analysis?..

Answer / aruna

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.

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difference b/w profit center & profitability analysis?..

Answer / mashu

Hi Murali
They have asked about Profit Center & Profitability
Analysis.
OK Not about Business area and Profit Cneter

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difference b/w profit center & profitability analysis?..

Answer / murali

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.

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