cost centers
Non-revenue generating units
A cost center is a department or unit within an organization that incurs expenses but does not directly generate revenue.
Accounting and human resources are typical cost centers, as opposed to sales or manufacturing divisions that produce income.
The term carries slight negative connotations in business contexts, where cost centers may face pressure to justify their budgets or reduce spending.
Management wants to trim the cost centers before touching revenue-generating departments.
- overheadsIndirect business expenses
- expensesMoney spent on things
- expenditureMoney paid out
- budget lineDesignated spending category
- accountingMaintaining financial records
budgeting · bottom line · operations · back office · divisions · allocation · departments · resources · management · administrative burden · finance · depreciation · expense tracking · money pit · operating expenses · analyses · performances · expenditures
- accountingbookkeeping, ledger, balance sheet, general ledger, accounts payable
- cost cuttingbudgeting, budget, budget cuts, expenses, expense tracking
- cost accountingoverhead, direct labor, break-even point, contribution margin, budget variance
- budgetingbudget, budgets, budget app, budget template, budget allocation
- budgetsbudget, budgets, annual budget, capital budget, cash budget
- corporate strategymergers, acquisitions, divestitures, divestiture, synergies
cost, center, costs, costing, costly, costliness, centers, centered, centering