Typically, departments such as IT (Information Technology) and accounting within a business are treated as cost centers, since these departments are not perceived as contributors to the firm's top-line (revenue). However, treating IT as a cost center can have its own drawbacks: since cost center managers are rewarded for keeping costs low, the firm might miss out in leveraging IT as a strategic resource which, when properly deployed, can improve sales!

So, before relegating a particular department / unit as a cost or profit center, the strategic implications of such action must be thought through in great detail.