The financials themselves are also organized
“Profit Centers” are the units of the business that management expects to contribute to the bottom line (profit) of the company. Revenues and expenses are tracked for the profit centers. There are many ways to organize profit centers inside a company’s financial system. Geographic profit centers (Dallas, Fort Worth). Market sector profit centers (education, healthcare, airports). Discipline-based profit centers (civil engineering, mechanical engineering). Understanding how your firm is organized financially can tell you a lot about incentives, pressures, etc.
THE PRINCIPALS ACADEMY 2022
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