Cost centre: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
(Add context.)
imported>Doug Williamson
(Add management accounting definition and expand treasury definition.)
Line 1: Line 1:
''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.




Line 7: Line 14:
* [[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.


See also