Difference between revisions of "Cost center"
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Revision as of 19:40, 10 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.
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.
