Cost Center

Knowledge Center

Summary, forum, best practices, expert tips and information sources.

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Welcome to the Cost Centers center of 12manage.

Here we exchange knowledge and experiences in the field of Cost Centers.

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Summary

What is a Cost Center?

Cost Centers are responsible for producing an agreed level of output (quantity + quality). Their efficiency is measured and rewarded according to how fully it achieves that objective.

In a Cost Center, inputs or expenses are measured in monetary terms, but output is not. Managers of these units are typically evaluated by means of productivity measures that relate the quantities of inputs used to generate the required outputs. They are evaluated on the cost efficiency with which they use a mix of inputs (labor, materials, and outside services). Because these managers are not held responsible for selling the company's products or services, they are not judged on revenues or profits.

Typical examples of these organizational entities are Manufacturing departments and Shared Services departments.

Special Interest Group

Cost Centers Special Interest Group.

Special Interest Group (13 members)

Forum

Forum about Cost Centers.

🔥	How to Create a Cost Center? I need to set up a cost center in our company. How do I go about it? In other words, how does one create a cost center... Please share some experiences and best practices? Thank you.... 2 2 comments