Question

Which of the following is most likely to be considered a profit center?

A. The grocery department of a Wal-Mart Supercenter or Target Superstore.
B. The maintenance department of a large retail operation.
C. A stand-alone eye clinic.
D. The personnel office of a business.
E. An individual retail store in a large chain.

Answer 1

A. The grocery department of a Walmart Supercenter or Target Superstore

Step-by-step explanation:

• A profit center is a type of business where the business is expected to make into valuable contributions, a profit center can be treated as a separate business of the company.

• The profits and losses for that center are calculated separately. Examples of profit centers include the store, sales organization, or consulting organization.