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What is the Major Difference Between Profit Center and
Business Area
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Answer Posted / satish
Profit Center is used to analyse the profit of the
different departments and branches within the organisation.
This helps for the reporting purpose of the profitability
of an organisation for the the particular period. Where we
do find vary in the profitablity (Numbers) of an
organisation from time to time.
Business Area describes the nature of the business of an
organisation. This remains stagnant irrespective of changes
in the profitability until an organisatiion decides to
changes its nature of the business, which again an extream
scinario.
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