Cost center
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.
Related lectures
- Principles of Accounting.[[Category: Accounting]
