What is a cost center?

October 18, 2021 2:33 am Published by yna.ostonal

Cost centers are usually groups or departments within the company that incur costs, but do not generate revenue. These can also be roles for individual employees. The cost centers are still essential for a fully-functioning business, thus, can’t be eliminated to save or cut costs. The number of cost centers in a company and the size of each will vary depending on the industry and the size of the company itself.