Controllable Contribution refers to the sales revenue of a division, less those costs that are controllable by the division's manager. It is a key metric for assessing the performance of divisional managers.
A part of an organization, usually an investment center or profit center which, although ultimately responsible to head office, enjoys a degree of autonomy in terms of decisions.
A profit center is a segment of a business organization that is responsible for generating its own revenue and profitability, often operating autonomously within a larger entity.
A revenue center is an area within an organization designated for generating income without being responsible for costs associated with production or service delivery.
Transfer price refers to the price charged by individual entities of a multi-entity corporation on transactions among themselves. It is also termed transfer cost and is predominantly used where each entity is managed as a profit center and must deal with other internal parts of the corporation on an arm's length basis.
