Left alone, each profit center should be expected to maximize its own value system. It is the central authority's responsibility to optimize the combination of profit centers.
Companies should express profit objectives for both the profit center and its manager in terms of absolute dollars of profit for the planning period, which are based on the projected potential of existing resources to generate cash flow.
Estimating Profit Performance from Similar Profit Centers
From profit center to strategy center management ☆
Engineering Costs and Production Economics
Volume 12, Issues 1–4, July 1987, Pages 267–273
Measuring Profit Center Managers