Cost centre: Difference between revisions
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imported>Doug Williamson (Add context.) |
imported>Doug Williamson (Add management accounting definition and expand treasury definition.) |
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''Corporate treasury''. | 1. ''Corporate treasury''. | ||
A treasury which acts as a service centre which hedges operational exposures, at a cost. | A cost centre treasury which acts as a service centre which hedges operational exposures, at a cost. | ||
This is the lowest-risk organisational response to treasury risk, compared with treasuries organised as cost saving centres or profit centres. | |||
2. ''Management accounting''. | |||
More generally, a cost centre is any part of an organisation to which costs may be charged for accounting purposes. | |||
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* [[Cost saving centre]] | * [[Cost saving centre]] | ||
* [[Hedging]] | * [[Hedging]] | ||
* [[Management accounting]] | |||
* [[Profit centre]] | * [[Profit centre]] | ||
* [[Response to risk]] | |||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
Revision as of 15:05, 1 May 2018
1. Corporate treasury.
A cost centre treasury which acts as a service centre which hedges operational exposures, at a cost.
This is the lowest-risk organisational response to treasury risk, compared with treasuries organised as cost saving centres or profit centres.
2. Management accounting.
More generally, a cost centre is any part of an organisation to which costs may be charged for accounting purposes.
