Profit Center

The branch or division of a company that creates profits individually and separately from the main organization.

Investopedia Commentary

The profit center's revenues and expenses are held separate from the main company's in order to determine their profitability.

See also: Conglomerate, Expenses, Revenue

profit center

A segment of a business for which costs, revenues, and profits are separately calculated, with the manager of the segment being responsible for and judged on the performance of that segment. A large corporation with diversified interests in paper manufacturing, trucking, and fast food may regard each of these three businesses as a profit center.