a department that adds to the cost of the company
A department, division, business unit or section of the university that controls its own budget and funds as determined by their unique Cost Code in SAP.
A function in a business where the cost of producing a product or service is tracked and personnel are held accountable for performance.
Departments within an operation such as marketing, accounting, maintenance, or housekeeping, that incur expenses as they provide support services to enhance the operation and ensure customer satisfaction.
A specific activity (or group of activities) where costs are incurred or income generated. Cost Centres provide a useful structure for the accounts in organisations with several different activities or donors.
A commercial accounting practice term that is increasingly used in the non-profit cultural sector. Its aim is to provide a much clearer management tool for gauging the true cost of any given activity within the overall picture of work. This might mean apportioning (sometimes referred to as "allocating out") an appropriate share of overhead expenditure to individual productions, concerts or exhibitions. On this basis, income and expenditure accounting will demonstrate within a total annual programme which activities made a "surplus" and which lost money.
Splitting up your expenses by department. Eg. rather than having one account to handle all power costs for a company, a power account would be opened for each depatrment. You can then analyse which department is using the most power, and hopefully find of way of reducing those costs.
A valid cost centre for recording expenditure and costs for accounting purposes.
A business unit which costs can be specifically allocated. A cost centre can be as small as a single machine or as large as a major subsidiary.
A cost centre is a production or service location, function, activity or item of equipment for which costs are accumulated and to which they are charged.
An element in the financial accounting code representing an organizational unit (usually specific to a department) used to isolate costs associated with permanent or ongoing identifiable operations.
Cost centres are divisions that add to the cost of the organisation, but only indirectly add to the profit of the company. Examples include Research and Development, Marketing and Customer service. A cost centre is often identified with a speed type number.
