A Cost Centre is an organizational element within a controlling area.
You may define cost centres according to your specific needs; the most common approach being defining cost centre for each of the bottom most organizational units that are supposed to manage their costs. So, typical cost centres could be canteen, telephone, power, human resources, production etc.
There are other ways of designing cost centres: you may create cost centres representing geographical requirements or responsibility areas or activities / services produced etc.
After defining individual cost centres, you will assign each one oi the cost centres to any the cost centre categories.
All cost centres of a controlling area are assigned to a standard hierarchy.
You may define cost centres according to your specific needs; the most common approach being defining cost centre for each of the bottom most organizational units that are supposed to manage their costs. So, typical cost centres could be canteen, telephone, power, human resources, production etc.
There are other ways of designing cost centres: you may create cost centres representing geographical requirements or responsibility areas or activities / services produced etc.
After defining individual cost centres, you will assign each one oi the cost centres to any the cost centre categories.
All cost centres of a controlling area are assigned to a standard hierarchy.
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