What is cost center??

A cost center is a department, division, or unit within an organization that is responsible for incurring costs but does not directly generate revenue. It is a specific area of an organization where costs are accumulated and monitored for budgeting, control, and reporting purposes. Cost centers are typically found in larger organizations and can include departments such as human resources, finance, administration, and IT. The main purpose of a cost center is to track and control expenses, allocate costs to different areas of the organization, and evaluate the efficiency and effectiveness of the department's operations.

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