Skip to Content
0
Former Member
Oct 21, 2011 at 06:10 AM

Use of profit centres justified even if there is no inter dept transfers

29 Views

hi there

Usually profit centers are used if one division is selling goods to another division in the same organization or output of one department is the input for other department. This makes the division owner to control costs and try to maximize profit/ performance.

If inter department transfers are not there , can we still use profit center accounting ? What are the advantages ?

Thank you,

V