SAP Modules Interview Question:

What is the difference between business area and profit center?

Submitted by: Administrator

Business area is where the total business is valuated as a whole Whereas Profit center is an area where the company/work place allows the outside agency to use its machinery for external profits (eq: A CNC machine which can run 24 hrs a day is utilized in our company for 15 hrs and the balance 9 hrs is let out for addition to the company's profit) is known as Profit Center.
Submitted by: Administrator