Cost Center

Cost Center
A department within an organization that does not directly add to profit, but which still costs an organization money to operate. Cost centers only contribute to a company's profitability indirectly, unlike a profit center which contributes to profitability directly through its actions. This type of department is likely to be one of the first targets for downsizing because, on the surface, it has a negative impact on profits.

Cost centers and profit centers are typically treated differently within an organization. Because a cost center doesn't produce a profit directly from its activities, managers of cost centers are responsible for keeping their costs in line or below budget. Examples of cost centers include marketing, human resources and research and development.

Investment dictionary. . 2012.

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  • Cost Center — ist eine aus dem Englischen übernommene Bezeichnung für eine eigenständige Unternehmenseinheit (Business Unit), die normalerweise ein Budget zur Verfügung hat, um dessen Ziele zu erreichen. In dieser Bedeutung kann ein Cost Center eine oder… …   Deutsch Wikipedia

  • Cost center — This article is about the term cost center . For the indoor athletic facility often referred to by the same name, see Cost Sports Center. Cost center may also refer to: Cost Sports Center, the indoor athletic facility often referred to by the… …   Wikipedia

  • cost center — An activity, unit, or individual within an organization with which costs can be identified. In contrast to a *profit center, a cost center usually incurs costs only, and does not generate income. Cost centers are often used for cost control and… …   Auditor's dictionary

  • cost center — noun : the most appropriate production unit (as a single machine, a group of machines or workers, or a department) into which manufacturing operations may be divided to facilitate the allocation and application of cost factors …   Useful english dictionary

  • cost center — any unit of activity, group of employees or machines, line of products, etc., isolated or arranged in order to allocate and assign costs more easily. * * * …   Universalium

  • cost center — unit of a business which generates costs …   English contemporary dictionary

  • Обслуживающий центр затрат (SERVICE COST CENTER)  — Центр затрат, оказывающий услуги другим подразделениям предприятия. Обслуживающий центр обычно начисляет затраты, связанные с такими услугами, своим заказчикам …   Словарь терминов по управленческому учету

  • Центр затрат, Центр стоимости (COST CENTER)  — Центр затрат это объект отнесения затрат, где аккумулируются затраты, связанные с одной или несколькими взаимосвязанными функциями или видами деятельности. В системе отнесения затрат на изделие элементы затрат вначале собираются по центрам затрат …   Словарь терминов по управленческому учету

  • Cost allocation — is a process of attributing cost to particular cost centers. For example the wage of the driver of the purchasing department can be allocated to the purchasing department cost center. It is not necessary to share the wage cost over several… …   Wikipedia

  • cost centre — ➔ centre * * * cost centre UK US noun [C] UK (US cost center) ► ACCOUNTING a part of a company or organization considered as unit so that the costs relating to it can be calculated for the company s accounts: allocate/charge sth to a cost centre… …   Financial and business terms