Changes

A '''profit center''' is division of a business where there is capability of meauring the Revenue and Expense solely related to that division of the business.  The capability is a function of both how business is conducted the sophistication of the accounting system to capture the individual revenues and expenses.

A '''profit center''' is a division of a [[business]] where there is capability of measuring the [[Revenue]] and [[Expense]] solely related to that division of the business.  The capability is a function of both how business is conducted the sophistication of the accounting system to capture the individual revenues and expenses.

Consider an oil change shop with a car wash attached.  The employees of each divison work only for one or the other.  The accounting system can separate payroll costs, supplies and inventories for each.

Consider an oil change shop with a car wash attached.  The employees of each division work only for one or the other.  The accounting system can separate payroll costs, supplies and inventories for each.

Certain costs, such as ground rent can be reasonable allocated by square feet.  In this simple example it would be possible to measure separately the profits of each.

Certain costs, such as ground rent can be reasonable allocated by square feet.  In this simple example it would be possible to measure separately the profits of each.