Study On The Development Of Profit Center In Enterprise

Under the global economy and knowledge economy, more and more factors affect the enterprise's survival and development, the product life becoming shorter, the technology developing more rapidly and greater market competition. Facing so many competitors, the enterprise must change the management concept and operation mechanism, pay more attention to the enterprise internal management, use scientific management method, design reasonable organization structure, and use advanced information system to improve the management standard and its strength. So the enterprise can deal with the change of the environment.Under such condition, the profit center system is adopted by more and more enterprises. By setting up profit centers, the economic profit of every business unit can be evaluated by profit indexes. And this will help the enterprise to identify the responsibility and enhance the management. Profit center system is not only a performance evaluation system but also becoming an important enterprise internal management method.This paper combines theories with the practice of Z company, does the research of the profit center related theories roundly, including the basic concept of profit center, the establishment principles, the establishment ways, the operation ways, dynamic modification etc. The paper summarizes the profit center establishment ways, give the general operation model, and give the implement step suggestions. And for the key problems in profit center system operation, this paper gives special expatiation, such as the transfer price deciding, the overhead cost allocation. It provides reference for enterprises, especially the manufacture enterprises, to implement profit center system.