Expense Center

Knowledge Center

What is an Expense Center?

An Expense Center is a cost center with an output that cannot be easily measured. Managers of these units typically have fixed budgets and should maximize service or output within that budget. Because the cost per output is difficult to measure, the users of an EC are generally not charged directly for its services. Rather these entities are paid via the overhead costs. As a result, the users of an EC tend to over consume its services. This then leads the manager of the EC to request additional budget.

Typical examples of these organizational entities are Human Resources, Accounting, Public Relations, Research and Development.

Forum Forum about Expense Centers. Start a new topic about Expense Centers Sign up for free

Courses about Expense Centers. Beginners Course Advanced Course Course for Experts

Expert Tips Advanced insights about Expense Centers. Here you will find professional advices by experts. Consultancy Tips Teaching Tips Practical Implementation Tips

Information Sources Various sources of information regarding Expense Centers. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.

Tools Useful tools regarding Expense Centers. News Videos Presentations   Books Academic More

Compare with: Strategic Business Unit  |  Profit Center  |  Cost Center  |  Revenue Center  |  Performance Management  |  RONA  |  Activity Based Costing  |  Balanced Scorecard  |  CSFs and KPIs  |  Value Based Management  |  Transfer Pricing

Return to Management Hub: Change & Organization  |  Decision-making & Valuation  |  Finance & Investing  |  Human Resources  |  Leadership

More on Management  |  Return to Management Dictionary

This ends our Expense Center summary and forum.