Cost centre

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Revision as of 17:00, 14 October 2020 by imported>Doug Williamson (Expand heading.)
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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