Costs Centre

Costs Centre Concept: A Costs Centre is a company’s unit (a section, department, person or process) with direct costs…

Costs Centre Concept

A Costs Centre is a company’s unit (a section, department, person or process) with direct costs that can be charged to them. In the case of the production areas costs centers, beyond the directly associated costs, are also given certain percentages from the company’s general costs, allowing by this isolate the total costs of the work of that unit.

Beyond making easier the control process, the costs centre creation also allows to assign responsibility to the managers of each unit being able, for this, also to be designated as responsibility centers.

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