The billing department is a profit center because it converts accounts receivable into cash and there are metrics like days sales outstanding that can be used t

The billing department is a profit center because it converts accounts receivable into cash and there are metrics like days sales outstanding that can be used to directly measure their impact on the bottom line. Cost centers on the other hand are indispensable, but evaluating their impact on the bottom line is hard to quantify and therefore subjective. Again, it’s not fair to the invaluable work done by the cost centers, but that’s what it is.