Path to the starting point: Basic Data - Cost Centers
Within an organization, a cost center is the area where costs are incurred and the services associated with those costs are provided. The cost center is often defined based on geographical aspects (e.g., by departments or business units), but can also be defined across departments based on functional criteria (e.g., research cost center, materials cost center). It serves to provide an accounting overview of the profitability of the areas under consideration, as it allows for precise internal allocation of activities and costs.
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