A profit center is typically established whenever an organizational unit has control over both its resources and its products or services.

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A profit center is established when an organizational unit has control over its resources and products or services, and is responsible for generating and reporting profits. This involves having the authority to make decisions about pricing, expenses, investments, and resource allocation that can impact the unit's financial performance. By contrast, cost centers and investment centers may have responsibility for certain costs or assets, but not the ability to generate revenue or profits directly.

A Profit Center Is Typically Established Whenever an Organizational Unit