Profit Center Accounting
What is Profit Center Accounting?
Profit Center Accounting (PCA) is an accounting method used to evaluate the performance of individual parts of an organization. It treats specific segments of a company as individual "profit centers" and tracks their revenues and expenses separately. This allows management to assess the profitability of each profit center and make informed decisions about resource allocation, performance improvement, and strategic direction. PCA is commonly used for internal management reporting and analysis.
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