An organizational unit or activity that provides goods and services primarily to internal university operations. Cost centers charge less than $125,000 annually to federally sponsored programs AND less than $1,000,000 in total charges.
The cost center is where the employee funding is identified. This is the link between the Human Resources and Finance systems. Cost centers will be defined at the Organizational Unit level.
See Center ; An account that normally has a credit balance, such as liability, net asset and revenue.
An accounting term that refers to a department or function in the organization that does not generate profit. See Profit Center.
See Recharge web page glossary definition of Cost Center
an accounting term used to refer to a department in a business that incurs expenses but does not generate revenue directly
an expense that is accepted as part of the cost of doing business but that does not contribute to the turnover
a self supporting ancillary business enterprise that generally charges other University departments and sponsored awards
A term used in MainBoss when allocating maintenance costs. Cost centers are parts of your organization that can be held responsible for such costs. For example, one organization might allocate costs on a department-by-department basis, in which case each department is a cost center. Another organization might consider each building a separate cost center, or each production line, or each project.
Cost Centers represent classification of a financial entity by Business Unit (campus), Fund Code (type of fund), Department ID (the responsible department), Program Code (the function of the entity) and Project ID. See UHS Cost Center Composition.
Splitting up your expenses by department. For example, rather than having one account to handle all power costs for a company, a power account would be opened for each department.
The smallest unit of activity or area of responsibility against which cost s are accumulated; defined sections in the corporate system, representing units of responsibility as well as accounting units. Editor's Note: While popular as a means of exercising corporate control, competition between cost centers can work to the disadvantage of the organization as a whole. [D02580] RMW Location, person, activity or project in respect of which cost s may be ascertained and related to cost units. [D04415] APM BS
An organizational division, department, or unit performing functional activities within a facility; for each such center, cost accountability is maintained for revenues produced and for controllable expenses incurred.
A department or other segment of a business organization to which costs (expenses) can be traced.