A profit center is a branch or division within a company that is responsible for generating revenue and managing its own expenses. The primary goal of a profit center is to maximize profitability by controlling costs and increasing sales. This allows management to evaluate the performance of different segments of the business independently. By treating each profit center as a separate entity, companies can identify which areas are performing well and which need improvement. This approach helps in making informed decisions about resource allocation and strategic planning, ultimately contributing to the overall success of the organization.