Cost center

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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

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