Recruiter's Glossary

Examples: ROE • Intercompany • Overhead Allocation

Profit Center

Term from Accounting industry explained for recruiters

A Profit Center is a department or division within a company that directly adds to the company's profits. Unlike departments that only generate costs (like HR or IT), a profit center makes money through sales or services. Think of it like a store within a larger retail chain – each store is responsible for its own sales and profits. When someone mentions managing or working with profit centers on their resume, they usually mean they've overseen departments that generate revenue and were responsible for their financial performance.

Examples in Resumes

Managed three Profit Center|Profit Centers with combined annual revenue of $12M

Improved Profit Center performance by 25% through strategic cost reduction

Led the transformation of support department into a Profit Center

Developed budgets and forecasts for multiple Business Unit|Profit Center|Profit Centers

Typical job title: "Profit Center Managers"

Also try searching for:

Business Unit Manager P&L Manager Division Manager Revenue Center Manager Department Head Operations Manager Business Manager

Where to Find Profit Center Managers

Professional Networks

Industry Resources

Job Boards

• Finance Jobs on LinkedIn
• eFinancialCareers

Example Interview Questions

Senior Level Questions

Q: How do you evaluate the performance of a profit center?

Expected Answer: A strong answer should discuss key metrics like revenue, costs, profit margins, ROI, and market share. They should mention both financial and operational metrics, and explain how they've used these to make strategic decisions.

Q: Describe a situation where you had to turn around an underperforming profit center.

Expected Answer: Look for examples of analyzing problems, developing action plans, implementing changes, and measuring results. They should demonstrate leadership skills and business acumen.

Mid Level Questions

Q: What steps would you take to improve profit center efficiency?

Expected Answer: Should discuss cost management, revenue growth strategies, process improvements, and team performance management, with specific examples from their experience.

Q: How do you prepare and manage a profit center budget?

Expected Answer: Should explain budget creation process, forecasting methods, tracking variances, and making adjustments based on performance data.

Junior Level Questions

Q: What's the difference between a profit center and a cost center?

Expected Answer: Should explain that profit centers generate revenue and are responsible for both income and expenses, while cost centers only incur expenses to support the business.

Q: What key reports would you review to monitor profit center performance?

Expected Answer: Should mention P&L statements, revenue reports, expense reports, and basic KPI tracking, showing understanding of fundamental business metrics.