Difference between revisions of "Cost center"
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:[[Cost center]]. A unit or department that incurs costs but does not generate [[Fiscal Revenue|revenue]]s. | :[[Cost center]]. A unit or department that incurs costs but does not generate [[Fiscal Revenue|revenue]]s. | ||
According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | ||
| − | [[Cost center]]. Responsibility center where the manager is accountable for costs only. | + | :[[Cost center]]. Responsibility center where the manager is accountable for costs only. |
| + | According to [[Managerial Accounting by Braun, Tietz (5th edition)]], | ||
| + | :[[Cost center]]. A responsibility center in which managers are responsible for controlling costs. | ||
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*[[Principles of Accounting]]. | *[[Principles of Accounting]]. | ||
| − | [[Category: International Accounting]][[Category: Articles]][[Category: Accounting] | + | [[Category: International Accounting]][[Category: Articles]][[Category: Accounting]] |
Latest revision as of 12:10, 14 July 2020
Cost center is a unit or department that incurs costs but does not generate revenues.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Cost center. A unit or department that incurs costs but does not generate revenues.
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Cost center. Responsibility center where the manager is accountable for costs only.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Cost center. A responsibility center in which managers are responsible for controlling costs.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
