Cost centre

1. Corporate treasury organisation.

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.

See also

• Absorption costing
• Activity-based costing
• Cost pool
• Cost saving centre
• Hedging
• Management accounting
• Profit centre
• Response to risk
• Treasury organisation