Answer / chutke amresh

Cost centers are divisions that add to the cost of the
organization, but only indirectly add to the profit of the
company.
Examples include Research and Development, Marketing and
Customer service.

Answer / sundara vadivu

it is a smaller segment of activity or area of
reponsibility for which cost can be accumulated

Answer / nitya

in a cost center,activities are done for the betterment and
devlopement of company's sale,product,customer satisfaction
and all such cost are combined in cost center.

Answer / himanshu

Cost centres are the various departments to which various
kinds of costs are allocated.
In layman terms-If the executive of Administrative
department drinks the coffee than the cost can not be
charged to maufacturing department but to administrative
department.
Technical terms pkgng cost is allocated to sales n distb
department.
Cost of raw material to manufacturing dept and so on.
For more referance-meheshwari and mittal

Answer / rucs

cost,profit,and investment center
A cost center is one which is responsible only for the
control of costs it does not concern itself with pricing of
products or even investing the surplus in a fruiful
manner,its only concern is with respect to managing the
costs it encounters.

Answer / sakthivelan

A cost center is part of an organization that does not
produce direct profit and adds to the cost of running a
company. Examples of cost centers include research and
development departments, marketing departments, help desks
and customer service

Answer / naina

A cost center is part of an organization that does not produce direct profit and adds to the cost of running a company. Examples of cost centers include research and development departments, marketing departments, help desks and customer service/contact centers.

Although not always demonstrably profitable, a cost center typically adds to revenue indirectly or fulfills some other corporate mandate. Money spent on research and development, for example, may yield innovations that will be profitable in the future. Investments in public relations and customer service may result in more customers and increased customer loyalty.

Because the cost center has a negative impact on profit (at least on the surface) it is a likely target for rollbacks and layoffs when budgets are cut. Operational decisions in a contact center, for example, are typically driven by cost considerations. Financial investments in new equipment, technology and staff are often difficult to justify to management because indirect profitability is hard to translate to bottom-line figures.

Business metrics are sometimes employed to quantify the benefits of a cost center and relate costs and benefits to those of the organization as a whole. In a contact center, for example, metrics such as average handle time, service level and cost per call are used in conjunction with other calculations to justify current or improved funding.

Answer / jitendra kumar

A resopnsibility centre which takes only input in terms of
Cash inflow but doesn't provide any output in terms of Cash
outflow is known as cost centre. Cost centres help
organisations indirectly in improving revenues and profits
like- R&D department can help in producing good products and
increase the sale.
As every responsibility centre works individually, cost
centre is not concern with decisions of other
resoponsibility centres like investment, sale, pricing,
profit etc.

Answer / ravikant

A department or other section of a company where managers
are directly responsible for costs. For example, consider a
company that has a manufacturing department, a research and
development department, and a payroll department. Each
department could be a cost center, and the directors of
each department would be responsible to keep costs to as
low a level as possible. The company thus accounts for each
cost center separately, which allows managers to take
immediate responsibility for cost growth and credit for
cost cutting.

Answer / m.arif shah

Cost centre is
defined as"a
location or
person or place
or machine or
thing for which
cost can be
ascertained and
used for the
purpose of cost
control."

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