Cost and profit centres

Cost and profit centres

Cost and profit centres

  • Cost and profit centres are used to look at the costs and profits caused by different departments or sections of a business. Each department or section is known as a centre.
  • Cost and profit centres may be used to divide up the fixed costs of a company into different departments.

Advantages of using cost and profit centres:

  • Helps achieve financial control.
  • Helps organise the business and give it structure.
  • Helps motivate staff in each centre.
Finance

Break even

Break even

Finance

Budgeting

Budgeting

Finance

Business planning

Business planning

Finance

Cash flow

Cash flow

Finance

Contribution

Contribution

Finance

Finance definitions

Finance definitions