What is the meaning cost centre?
Asked by Venkatreddy C
-
1 Answer
-
A cost center is a department within an organisation that does not directly add to profit but still costs the organisation money to operate. Cost centers only contribute to a company's profitability indirectly, unlike a profit center, which contributes to profitability directly through its actions. Typical example of cost centers in an organisation are facilities and infrastructure, human resources, research and development, finance department, legal, etc.
Taking an Exam? Selecting a College?
Get authentic answers from experts, students and alumni that you won't find anywhere else
Sign Up on ShikshaOn Shiksha, get access to
- 65k Colleges
- 1.1k Exams
- 664k Reviews
- 1600k Answers