ECONOMICS

Detailed explanation-1: -The main function of a cost center is to track expenses. A cost center manager is only responsible for keeping costs in line with the budget and does not bear any responsibility regarding revenue or investment decisions. Cost centers provide metrics more relevant to internal reporting.

Detailed explanation-2: -A cost center is a responsibility center that incurs costs (or expenses) but does not directly generate revenue. A profit center is a business center that generates both revenue and costs. Some profit centers are also considered investment centers.

Detailed explanation-3: -Cost Centre-A Cost Centre is a department or a unit which supervises, allocates, segregates, and eliminates all sorts of the cost related to a company. The cost center prime work is to check the cost of an organization and to limit the unwanted expenditure the company may acquire.

Detailed explanation-4: -Cost center managers are fiscally responsible for the transactions charged to the center. Managers are responsible for developing the annual cost center budget of revenues and expenses for the upcoming year in conjunction with the president or their area vice president.

Detailed explanation-5: -The meaning is that you can change business area in a new validity period of your cost centre (where no data is posted yet). For the validity period where the data is posted, the simple change is not possible; you have to go through very long procedure of data update and reconstruction. Alert Moderator.