cost centre


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cost centre

a group of machines, a factory department or some other organizational sub-unit of a firm under the control of a manager, for which costs can be ascertained and used for purposes of COST CONTROL. See STANDARD COST, PROFIT CENTRE, REVENUE CENTRE.

cost centre

an organizational subunit of a firm that is given responsibility for minimizing COSTS but has no control over its product pricing and revenues. Cost centres facilitate management control by helping to ascertain a unit's operating costs. See PROFIT CENTRE, INVESTMENT CENTRE.
References in periodicals archive ?
Software Asset Management transforms applications from cost centre to strategic asset
If the CIOs want to be considered as a business-oriented person, they should morph their cost centre into a profit centre.
The solution will provide management with information on which numbers were called the most, the most expensive calls, the costs by call type, local, national and international calls, mobile roaming calls, calls by date and time and calls by cost centre.
The airline said that, for the past three years, it has worked with the TWU to transform the maintenance organisation from a cost centre to a profit centre.
The levels of access are controlled by use of a swipe card or PIN number, followed by entry of cost centre, project or works order numbers, thus allowing management of the inventory.
PowerCenter integrates and loads budget, cost centre, financial and other data into the Oracle-based administrative operational data store and data warehouse of the R&D division.
So the challenge for most firms is to recognise the commercial value of the investment to both the customers and the company, while maintaining the function as a cost centre. Normal measures on a service ROI will include delivered service levels, customer satisfaction and loyalty levels.
Team Leader/ Cost centre cards Linked to specific cost centres
They should also foster better coordination between their respective revenue and cost centres to achieve optimal financial performance.'
Structural changes are being planned and have been divided according to the carrier's main cost centres including sales and marketing, fleet costs, personnel costs and maintenance activity.
It did this because many of its employees had been working across divisions and, therefore, outside their cost centres. This raised questions about the effectiveness of the traditional model of management accounting, which bases its outputs on the organisation's administrative structure and cost centres.
It is a comprehensive, covering most of the specific functions of our industry, including accounting, cost centres, profit centres, forecasting, order processing, third party packaging, inventory management, production planning, purchasing, product recall, Green Point (packaging waste management), Pallet management; etc.