Profit Center managers are responsible for managing both revenue and expenses and ultimately, the profitability of their profit center. Profit center managers generally have no control over the cost center expenses that are allocated. However, profit center managers are held responsible for the allocated costs because these costs impact the overall profitability of the profit center.

Do you think it is appropriate to hold profit center managers responsible for the impact that the allocated costs have on overall profitability? Why or why not?

Thank you so much!