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What is Understanding Profit Centers in Business about?
A profit center is a company segment that manages its own revenues and expenses but lacks control over certain costs like salaries and corporate expenses. The manager can make decisions regarding markets and supplies, impacting the contribution margin. In the case of profit center No. 12, it controls an $84,000 contribution margin but not other summarized income statement items.
- Author
- Marion Macarius De Guzman
- Language
- EN