ROLE OF CA - DEBIT TO COST CENTRE OR CREDIT TO PROFIT CENTRE

Hi,

Profit Centre means analysis of revenue of a unit

Cost Centre means the collection of costs of a unit

The expression means whether ca should be looked as incurrance of cost by the enterprise or as valueaddition made by him against the cost incurred by the enterprise.

What is the means of cost centre & profit centre?

Cost centre is a unit in an organistaion which has a negative impact on profit. It is a subdivison in an organisation with which cost are identified for the purpose of managerial decision making and progit centre is an organistaional unit designated as a seperate entity for the purpose of revenue genertaion

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Thnx gaurav

It supported me a lot