The Primary objective of Profit Center is to represent an independent organizational subunit that operates practically independently in the market, bears responsibility for it's own costs and revenue , and can be expanded to become an investment center or can be treated as a Company within a company.The Profit center approach embodies the increasing re-establishment between internal and external accounting, functioning as a connecting link between two accounting concepts.Profit Center Accounting helps in answering the following questions :
ROI , EVA and cash flow analyses are possible at profit center level.