The meaning of the word cost center in the dictionary of the Great Russian language of business communication. Management, accounting, financial structure

How to properly design the company's accounting financial structure, identify accounting centers (profit centers, cost centers). (10+)

Profit/Loss, Income/Expense Centers - Management Structure

Internal allocation of centers of income (profit) and expenses (cost)

This division is used for the purposes of planning, accounting and motivation. The company defines earning units, it is believed that they bring money to the company from the market, and service units that serve to ensure the normal work of earners.

For some divisions, such a division is natural and unambiguous. For example, accounting, security, secretariat are cost centers (costs). For other blocs, some voluntaristic decision is required. So, in some companies, it is believed that the sales department is the center of costs (costs), and production is the center of income. That is, sellers serve production in terms of marketing its products. In other companies, the opposite is true: production is the center of costs, and sales is the center of income. That is, production serves sellers in terms of manufacturing what they sell. The feasibility of one or the other approach depends on what the market situation is. If the problems are in sales, then the sales department should be appointed as the revenue center. If so many are sold that it is impossible to produce everything, then it is reasonable to choose production as the center of income. The market situation can change, so it is useful to periodically revise the management and financial structure of the enterprise.

In one company there may be several centers of income, for example, by types and subtypes of products, and for sure there are several centers of expenses. In general, the managerial allocation of profit and cost centers is also carried out in corporations where several legal entities are involved. At the same time, the legal structure does not affect the managerial structure in any way. It may turn out that the divisions included in one center are formally registered in different legal entities, and vice versa, in one legal entity there may be several profit and cost centers.

After centers have been allocated, all revenues are reflected in the revenue centers, and the costs of the cost centers are distributed among the revenue centers. The task of income centers is to earn maximum profit, that is, to increase income and limit expenses, including the expenses of cost centers attributed to them. It is to the solution of this problem that employees of profit centers should be stimulated (including financially). Cost centers should strive to meet all the needs of revenue centers with minimal cost. Their material incentives should be built on the encouragement of solving this problem.

Allocation, internal tariffs, prices

The process of distributing the costs of cost centers to profit centers is called allocation. It is needed in order to determine how much the revenue center actually earned, taking into account the costs of performing its tasks.

There are two common allocation principles. First- proportional distribution of all costs according to the coefficients determined by internal standards. For example, all costs are divided between profit centers in proportion to the number of employees in them or in proportion to the income they bring. Second- internal tariffs. In this case, the cost centers, in agreement with the revenue centers, determine the internal discount rate for their services. For example, it is determined that the cleaning of one square meter of area costs so much, the maintenance of one computer workplace - so much, the performance of one accounting operation - so much. Revenue centers, in terms of management accounting buy these services from cost centers. The rates themselves can be easily determined by comparing the cost of the same outsourcing services, because for most services (accounting, cleaning, IT maintenance, etc.) there are enough companies on the market that are ready to perform these works. Internal rates should be less than market rates, otherwise the meaning of keeping your own staff is lost. Typically, domestic rates are chosen 30% - 50% below market rates. If this cannot be done (the costs of the cost center are too high), then it makes sense to involve an outsourcer.

In the second approach, it is necessary to check that the activity of cost centers will not be unprofitable, taking into account the fact that they provide their services not only to income centers, but also to each other. So, in the accounting department and the IT department, it is necessary to clean up, IT purchases must be reflected in accounting, and computers in the accounting department must be serviced.

In the example above, when the sales department is a profit center and production is a cost, the second approach turns out that the sales department is, as it were, an intermediary working for a commission between the intrinsic value of the product and the price for which it sells it to external buyers. This organization has proven effective in many companies.

The most successful is the combination of the two described approaches to allocation. For those units whose internal cost of services is easy to determine (accounting, secretariat, building and premises maintenance, information Technology and communications, etc.), a tariff approach should be applied. For other divisions (company management, public relations department, internal control etc.) it is better to define distribution norms.

Unfortunately, errors occur periodically in articles, they are corrected, articles are supplemented, developed, new ones are being prepared. Subscribe to the news to stay informed.

We carry out marketing analysis. We analyze competitors, the market, surrounded by...
Analysis of competitors and market environment. Conduct yourself. It's easy and cheap....

An example of a commercial proposal for a new product for a retail outlet...
The commercial offer of my clients, which they handed out at the first stage of the...

Position profile, job vacancy, staff unit, vacancy...
Job profile. Requirement template for a job applicant....

Signature of an individual - examination of authenticity. Review....
Experience in handwriting expertise. The man claims he didn't sign the document...

Price (Price) is the assigned amount for the purchase of products, goods or services. Price is the flywheel of the market mechanism. Low prices stimulate consumption and reduce production. High prices reduce the number of purchases and stimulate production.

Cost per conversion (Conversion Value) - market price convertible security divided by the number of shares for which it can be exchanged.

IPO price, offer price (IPO Price, Offering Price) - the price of the first placement of shares, which is determined by the underwriter before the shares begin to be quoted on the stock exchange. Once the shares are first quoted, their price is determined by actual supply and demand, and may be higher or lower than the initial offering price. See underwriter.

Acquisition price (Cost to Buy) - direct and indirect costs required to purchase products, goods or services.

Fixed income security (Fixed-Cost Security) - a security that provides its holder with an inflow of income in the form of interest or dividends of a constant value during the entire period of its validity.

Revenue Center (Revenue Centre) - a division of the company; financial responsibility center responsible for generating income and having necessary resources and powers that affect the increase in revenues within their unit.

Cost center (Cost Centre) - a division of the company; financial responsibility center responsible for effective use costs and possessing the necessary resources and powers that affect the reduction of costs within its unit. See Financial Responsibility Center.

Investment Center (Investment Centre) - a company or division of a company; a financial responsibility center responsible for the efficient use of investments and profit generation, and having the necessary resources and powers that affect the profitability and return on investment, increasing revenues and reducing costs within its unit. See Financial Responsibility Center, Profit Center.

profit center (Profit Centre) - a company or division of a company; the center of financial responsibility, responsible for generating profits, and having the necessary resources and powers that affect the increase in income and decrease in expenses within its unit. See Financial Responsibility Center.

Financial Responsibility Center (Financial Center) - a company, or a division of a company, allocated in the financial structure into an independent unit responsible for the implementation key indicators and has the necessary powers and resources to do so. Financial responsibility centers are divided into revenue centers, cost centers, profit centers and investment centers.

Cycle cash flows (Cash Flow Cycle) - the period of time for which money turns into inventories, inventories are converted into receivables, and then debt receivables are converted back into cash.

Working capital cycle (Working Capital Cycle) - transformation of working capital for the period into cash inflows and outflows.

Cyclical fluctuations (Cyclical Variations) - the impact on the change in operating conditions caused by business cyclicality on the company's cash flows.

• About the business school. Courses and seminars on finance for economists, managers

16.09.2019

When the company needs management consulting? - Interview of Alf Business School Director Alla Uvarova for the Community of Managers Executive.ru

11.03.2019

Seminar “Cost Management. Costing" for employees economic management State scientific center Russian Federation FSUE "NAMI".

07.02.2019

Alpha Business School held a corporate seminar "Management accounts receivable” for employees of the distribution company “Lit Trading”.

16.10.2018

Alla Uvarova, director of the Alpha School of Business, told the Community of Managers of the Executive.ru portal about how the demand for corporate distance learning is changing and about trends in business education.

28.06.2018

A seminar “Planning and Budgeting: Best Practices at Fuel and Energy Complex Enterprises” was held in Moscow for representatives of the financial and economic services of the Gazprom corporation.

04.04.2018

Ryazan hosted a seminar on financial analysis for economists of the Ryazan design bureau "Globus".

05.02.2018

Alpha Business School held a seminar "Finance for non-financiers" for directors of branches of Roszheldorproject JSC.

a structural subdivision of the company that does not earn profit and is financed by the profit center from the budget. Bone - include the cost of the cost center.

• - KOCT Adolf, French. sociologist. Founder of the demographic school in bourgeois sociology. K. put forward a theory about the definition. the role of demographic factor in society. development...

  Demographic Encyclopedic Dictionary

• - a geometric point, the position of which characterizes the distribution of masses in a body or a mechanical system ...

  Physical Anthropology. Illustrated explanatory dictionary

• - a prefix indicating a connection with the ribs. For example: costectomy rib resection...

  medical terms

• - Syncretic sect. Relating to movement New Age. Central to the sect is the UFO cult. The most revered leaders of the sect are the so-called contactees...

  Religious terms

• - Adolf - French. bourgeois positivist sociologist; President of the Paris Statistical about-va. K.'s views were formed under the influence of Comte, Spencer, K. Bernard ...

  Philosophical Encyclopedia

• - a city in Ghana, a port on the Gulf of Guinea, the administrative center of the Central Region. 102 thousand inhabitants. Fishing. Food businesses. University...
• - Owls. organic chemist. R. in Krasnodar. Graduated from Moscow University. Worked there. In 1941-1945 he was in the Soviet. Army...

  Big biographical encyclopedia

• - an organization authorized by the Gosgortekhnadzor of Russia to provide practical assistance to enterprises, organizations and individuals in terms of ensuring safety during operation, installation and repair ...

  Construction dictionary

• - Regulatory method of accounting for finished products...

  Glossary of business terms

• - a method of cost accounting, according to which only direct costs should be taken into account in the cost price. D.'s essence - to. It consists in the fact that all costs are divided into two groups: variable and fixed ...

  Big accounting dictionary

• - "..." optical center" - the point of intersection of the reference axis with the outer surface of the diffuser of the light device;..." Source: Decree of the Government of the Russian Federation of 10.09 ...

  Official terminology

• - French naturalist - prof. College de France...

  Encyclopedic Dictionary of Brockhaus and Euphron

• - a city in Ghana, the administrative center of the Central Region. 71.6 thousand inhabitants. Port on the coast of the Gulf of Guinea. Export of cocoa beans. Food businesses. Fishing. University College...

  Great Soviet Encyclopedia

• - a seaside resort in Australia; see Southport...

  Big encyclopedic dictionary

• - organic chemist, professor of Moscow State University. Developed methods of electrophilic substitution in the indole series. He discovered the rearrangement of nitrogenous heterocyclic compounds into aromatic amines...

  Big encyclopedic dictionary

• - A spicy, medicinal root obtained from the East Indies and Brazil...

  Dictionary of foreign words of the Russian language

"cost center" in books

2. Cape Coast - Kumasi

From the book Come Back and Take It author Stesin Alexander Mikhailovich

2. Cape Coast - Kumasi Three weeks before my trip to Ghana, the staff of St. Vincent mobilized, unanimously deciding that I needed to be prepared for the upcoming trip. The main preparation consisted in the fact that my comrades vying with each other

Center and right center

From the book Time of Putin author Medvedev Roy Alexandrovich

The Center and the Right Center Created primarily by Yuri Luzhkov and his political allies, the Fatherland party initially declared itself to be a party of the social democratic type, that is, a party of the left center. In 1999, in opposition to it, the Unity party was created,

COST

From the book Life will go out, but I will stay: Collected works author Glinka Gleb Alexandrovich

KOST Kost ate unevenly, Now satiety, then little, His wife did wrong With him. She loved him with a changeable love. She was twenty-eight, He was spitting blood. They parted in autumn On the banks of the Gudal He gave her twenty-eight, She

Center

From the book Who and when bought Russian empire author Kustov Maxim Vladimirovich

Center Earlier and most severely, the consequences of the two revolutions of 1917 were reflected in major cities, primarily due to their dependence on the work of urban communications, transport and food supplies from the villages. In 1917, some semblance of the former life was preserved,

sunk coast

From book Financial management is simple [Basic course for managers and beginners] author Gerasimenko Alexey

Sunk cost As a special case of the logic of incremental cash flows, it must be said that the funds already spent on the project by the time the decision is made (by the time the project is evaluated) should not be taken into account in the calculation of the NPV project. These are the so-called sunk costs - “drowned

79. System "standard-cost"

From the book Accounting: Cheat Sheet author Team of authors

79. System "standard-cost" The system "standard-cost" is a system of cost accounting and costing using standard (standard) costs, the main objectives of which are the management and control of costs, setting real prices,

Center

From the book Three Rings of Power. Good fortune constructor author Lyudmila-Stefania

Center The center of your environment contains the energy of careful storage, balance and stability. Here you will find a feeling of support from the Universe, this is the sum total of your decisions. Around us The Earth is associated with the Center - practicality, gradual progress,

3.14.3. Demographic determinism (L. Gumplovich, A. Cost, E. Durkheim, D.I. Mendeleev, A.A. Bogdanov, R. Carneiro, O. Douglas, J. Matras, J. Simon, L. Chevalier, N.I. Moiseev and etc.)

From the book Philosophy of History author Semenov Yuri Ivanovich

3.14.3. Demographic determinism (L. Gumplovich, A. Cost, E. Durkheim, D.I. Mendeleev, A.A. Bogdanov, R. Carneiro, O. Douglas, J. Matras, J. Simon, L. Chevalier, N.I. Moiseev and etc.) Popular in the XIX and XX centuries. continued to remain and demographic determinism. To the demographic factor

3.5. SYNDICATE'S BRAIN CENTER - "SI CENTER". PROJECT "ANTI-RUSSIA"

From the book Russian Holocaust. The origins and stages of the demographic catastrophe in Russia author Matosov Mikhail Vasilievich

3.5. SYNDICATE'S BRAIN CENTER - "SI CENTER". PROJECT "ANTI-RUSSIA" It is clear that the preparation of operations on a global scale requires a balanced setting of tasks, an analysis of possible ways to solve it, a reasonable choice the best option accommodation financial resources for their

CENTER OF GRAVITY AND CENTER OF FORCE

From the book Da-jie-shu [The art of suppressing combat] author Senchukov Yury Yuryevich

CENTER OF GRAVITY AND CENTER OF FORCE The configurations of circles, eights, knots and loops that make up the fighting technique can be very different. Starting to study these movements, we cannot ignore the very important concept of the “center of force.” The CENTER OF FORCE is an actively moving point,

Chapter 9 Can it be cheaper? Shopping Secrets

From the book Rest without intermediaries author Romanovskaya Diana

Chapter 9 Can it be cheaper? Shopping secrets It's no secret that the same thing can be bought both very expensive and very cheap. It depends on time and place. At the beginning of the season - one price, at the end, during sales - another. You can buy branded

Cape Coast

From the book Great Soviet Encyclopedia (KE) of the author TSB

Cape Coast Cape Coast is a city in Ghana, the capital of the Central Region. 71.6 thousand inhabitants (1970). Port on the coast of the Gulf of Guinea. Export of cocoa beans. Food businesses. Fishing. University College. K.-K. founded in 1652.

8/revenue center or profit center

From the book Ideas for a million, if you're lucky - for two author Bocharsky Konstantin

8/revenue center or profit center Aleksey Demin, director of TPK Tekhprom LLC, NovosibirskThe idea of ​​working on a franchise basis should be abandoned once and for all. So the company only helps entrepreneurs organize someone else's business, and they can at any time

RUSSIAN CENTER UNDER IMPACT RUSSIAN CENTER UNDER IMPACT 10.10.2012

From the book Newspaper Tomorrow 983 (40 2012) author Tomorrow Newspaper

Center of Power #5 Center of Power #5 Strategy Game: Islamic Factor Shamil Sultanov 09/12/2012

From the book Newspaper Tomorrow 980 (37 2012) author Tomorrow Newspaper

COST CENTER

a structural subdivision of the company that does not earn profit and is financed by the profit center from the budget. Bone - take the cost to the cost center.

Great Russian Dictionary business communication. 2012

See also interpretations, synonyms, meanings of the word and what is KOST-CENTER in Russian in dictionaries, encyclopedias and reference books:

• CENTER The Illustrated Encyclopedia of Weapons:
  IMPACT - the point on the edge of the blade, which first comes into contact with the target when ...
• CENTER in the Slang Dictionary of Sevastopol:
  1. District of the Central city hill 2. Residential area on the waterfront in ...
• CENTER
  TRADE INTERNATIONAL - see INTERNATIONAL TRADE CENTER ...
• CENTER in the Dictionary of Economic Terms:
  TECHNICAL - see TECHNICAL CENTER ...
• CENTER in the Dictionary of Economic Terms:
  SALES - a sales department of a company that is not allowed to reduce the price of a product to increase sales, but is required to achieve ...
• CENTER in the Dictionary of Economic Terms:
  SETTLEMENT - see SETTLEMENT CENTER ...
• CENTER in the Dictionary of Economic Terms:
  JAPANESE PERFORMANCE - see JAPANESE CENTER…
• CENTER in the Dictionary of Economic Terms:
  RECEIVING PROFIT - a division of the company with a pronounced commodity orientation of activity, which is able to independently make a profit, regardless of the success of its work ...
• CENTER in the Dictionary of Economic Terms:
  OFFSHORE - see, OFFSHORE ...
• CENTER in the Dictionary of Economic Terms:
  UN HUMAN RIGHTS - the main unit of the UN Secretariat for the implementation of programs in the field of human rights. Responsible for the executive management...
• CENTER in the Dictionary of Economic Terms:
  COSTS - the production unit of the company, for which consumption standards are set ...
• CENTER
  in mechanical engineering - a steel cone used to install a product during processing on a machine tool, in control and measuring ...
• PHYSICAL CENTER
  In mechanics, the concept of a center is either associated with the concept of symmetry (see Axis) around it, or with the concept of a place ...
• CENTER V encyclopedic dictionary Brockhaus and Euphron:
  - In mechanics, the concept of a center is either associated with the concept of symmetry around it, or with the concept of a place of application ...
• COST in the Encyclopedic Dictionary of Brockhaus and Euphron:
  (Jean-Victor Coste) - French. naturalist (1807-1873) - prof. Collège de France. He earned honorable fame for his work on the artificial breeding of fish. …
• CENTER
  [Latin centrum, from the Greek point (compass), focus] 1) in geometry, the center of a circle (ball) is a point equidistant from all points of the circle ...
• CENTER in the Encyclopedic Dictionary:
  a, m. 1. A point in a geometric figure, a body that has some kind of. only by its inherent property and usually obtained by crossing some lines, ...
• CENTER in the Encyclopedic Dictionary:
  , -a, m. 1. A point in a geometric figure, a body that has some kind of. only by its inherent property and usually obtained by the intersection of lines, ...
• CENTER
  STORAGE OF MODERN DOCUMENTATION (TSKhSD) K-that on affairs of archives at Pr-ve Ros. Federation. Created in 1991 in Moscow on the basis of the archives ...
• CENTER in the Big Russian Encyclopedic Dictionary:
  GRAVITY, invariably associated with TV. body is a point through which the resultant of gravity forces acting on the particles of this body passes for any ...
• CENTER in the Big Russian Encyclopedic Dictionary:
  TRAINING OF COSMONAUTS, osn. in 1960 (since 1968 named after Yu.A. Gagarin); located in the Star City of Moscow. …
• CENTER in the Big Russian Encyclopedic Dictionary:
  MASS (center of inertia) of a body (system of material points), a point, the position of a swarm characterizes the distribution of masses in the body or mechanical. system. When moving…
• CENTER in the Big Russian Encyclopedic Dictionary:
  PRESSURE in hydroaeromechanics, the point of application of the resultant forces acting on a body moving or at rest in a fluid or ...
• CENTER in the Big Russian Encyclopedic Dictionary:
  (lat. centrum - the center of the circle), the middle. Locality(for example, the region of Ts.). The place of concentration of k.-l. activities, governing bodies, org-tions and ...
• COST in the Encyclopedia of Brockhaus and Efron:
  (Jean-Victor Coste) ? French naturalist (1807?1873) ? prof. Collège de France. He earned honorary fame for his work on artificial ...
• CENTER in the Popular Explanatory-Encyclopedic Dictionary of the Russian Language:
  -a, m. 1) (of which, only a unit) The middle, the middle part of smth. City center. Be in the center of the site. She [veranda] ...
• CENTER in the Dictionary of synonyms of Abramov:
  center, hearth, focus. Center of gravity. Wed . See the gist,…
• CENTER full spelling dictionary Russian language:
  center, …
• CENTER in the Spelling Dictionary:
  center, …
• CENTER in the Dictionary of the Russian Language Ozhegov:
  dominant, leading institution of any industry Cardiological c. Oncological c. Television c. Center for training astronauts. C. flight control. city ​​center with …
• CENTER in the Dahl Dictionary:
  husband. , lat. focus, awn, autumn, osten. Center of a circle, ball. Circles of one or common center, drawn from one point. | …
• CENTER in the Modern Explanatory Dictionary, TSB:
  in mathematics -..1) the center of symmetry of a geometric figure is a point O such that the figure, together with point A, always contains and ...
• CENTER V explanatory dictionary Russian language Ushakov:
  center, m. (Greek kentron, lit. point). 1. the point of concentration of some. relations in the figure (mat., fur.). The center of a circle or ball (point ...
• PYRAMID OF THE TEMPORAL BONE in Medical terms:
  the inner part of the temporal bone, which has the shape of a trihedral pyramid, directed by the apex (apex of the P. to. to.) forward and medially; inside P. in. …
• CAPE COST in the Big Encyclopedic Dictionary:
  (Cape Coast) a city in Ghana, a port on the Gulf of Guinea, the administrative center of the Central Region. 102 thousand inhabitants (1982). Fishing. Food businesses. …
• GOLD COST in the Big Encyclopedic Dictionary:
  seaside resort in Australia; cm. …
• CAPE COST
  (Cape Coast), a city in Ghana, the administrative center of the Central Region. 71.6 thousand inhabitants (1970). Port on the coast of the Gulf of Guinea. Export of cocoa beans. …
• CAPE COST in the Big Russian Encyclopedic Dictionary:
  (Cape Coast), city in Ghana, port on the Gulf of Guinea, adm. c. Central region 102 t.zh. (1982). Fish-in. Pishch. pr-tiya. …
• GHANA in the Directory of Countries of the World:
  REPUBLIC OF GHANA A country in West Africa. In the north and northwest it borders on Burki-na-Faso, in the east - on Togo, in the west ...
• ACCRA in the Directory of Characters and Cult Objects of Greek Mythology:
  (Accra) I 1st Anglo-Ashanti war. The place of the battle in 1824 between the 10,000th Ashanti army and the British (1000 people) under the command of the gene. sir...
• MEUKOW in the Dictionary of Alcoholic Beverages:
  (cognac house Meukow) The creators of this brand are the brothers Auguste-Christow Auguste-Christophe and Gustave Meukow Gustave Meukow, immigrants from Silesia and later …
• SOUTHPORT in the Big Encyclopedic Dictionary:
  (Southport) (b. Gold Coast Gold Coast), a seaside climatic resort in Australia, on the Pacific coast, south of Brisbane. Australia's largest...
• SOCIOLOGY in big Soviet encyclopedia, TSB:
  (French sociologie, from Latin socictas - society and Greek logos - word, doctrine; literally - the doctrine of society), the science of ...
• PRECIOUS LITERATURE in the Great Soviet Encyclopedia, TSB.
• REGION (TERRAIN) in the Great Soviet Encyclopedia, TSB:
  (from Staroslav possessed - possession), locality, land, region; part of any territory (country, state, mainland, terrestrial land, etc.) allocated ...
• RESERVE in the Great Soviet Encyclopedia, TSB:
  a section of a territory (water area) on which its entire natural complex is preserved in its natural state. Z. are usually declared areas typical for a given ...
• DUMENIL in the Great Soviet Encyclopedia, TSB:
  (Dumesnil) (real name and surname - Marie Francoise Marchand; Marchand) (2.1.1713, Paris, - 20.2.1802, ibid.), French actress. Stage activity...