Cost Center/profit CENTER/GL Account

Difference between cost center & profit Center?

A profit center is the department, or division of an enterprise, earns revenue from selling a product or providing a SE Rvice to either an internal or external customer.
Cost center is the department or division, offers support services to the enterprise without earning a revenue.

EXAMPLE:A Product division of a company, which sells products on the market is a profit center.
Corporate functions of the same company which render support in HR, Admin, or finance is cost centers.

Relationship between cost centers and profit centers

Cost Center/profit CENTER/GL Account