A profit center is

A) a responsibility center that always reports a profit.
B) a responsibility center that incurs costs and generates revenues.
C) evaluated by the rate of return earned on the investment allocated to the center.
D) referred to as a loss center when operations do not meet the company's objectives.

Profit Center

A business segment or department within an organization that is responsible for generating its own revenue and thereby directly impacting profitability.

Responsibility Center

A department or unit within an organization that is accountable for specific activities and performance, with its performance measured against planned objectives.

Generates Revenues

Refers to the activities or mechanisms through which a business or organization brings in income.