The meaning of the word cost center in the dictionary of the Great Russian language of business communication. Income center, cost center, investment center Allocation, internal tariffs, prices

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.

Conversion price Conversion Value - the market value of a convertible security divided by the number of shares for which it can be exchanged.

Initial offering 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 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.

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

Fixed income security (Fixed-Cost Security) - security, providing its holder with a flow of income in the form of interest or dividends of a constant value throughout the entire period of its validity.

Revenue Center (Revenue Center) - a division of the company; center of financial responsibility, responsible for generating income and having the necessary resources and powers to increase income within its division.

Cost Center (Cost Centre) - a division of the company; a center of financial responsibility, responsible for the efficient use of costs and having the necessary resources and powers to influence the reduction of costs within its division. See Center for Financial Responsibility.

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

Profit Center (Profit Center) - a company or a division of a company; a center of financial responsibility, responsible for generating profit, and having the necessary resources and powers to increase income and reduce expenses within its division. See Center for Financial Responsibility.

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

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

Cycle working capital (Working Capital Cycle) - transformation of working capital over a period into cash inflows and outflows.

Cyclical fluctuations (Cyclical Variations) - the impact on changes in operating conditions caused by the cyclical nature of business on the company’s cash flows.

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How to properly design an account financial structure companies, allocate accounting centers (profit centers, cost centers). (10+)

Profit/loss, income/expense centers - Management structure

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

This division is used for planning, accounting and motivation purposes. The company defines earning divisions, which are considered to bring money into the company from the market, and service divisions, which serve to ensure the normal operation of the earning divisions.

For some divisions, such a division is natural and unambiguous. For example, accounting, security, secretariat are cost centers (expenses). For other blocks, some voluntaristic decision is required. Thus, in some companies it is believed that the sales department is a cost center, and production is a revenue center. That is, sellers serve production in terms of marketing its products. In other companies, it’s the other way around: production is a cost center, and sales is a revenue center. That is, production serves sellers in terms of producing what they sell. The appropriateness of one or the other approach depends on what the market situation is. If there are problems in sales, then the sales department should be designated as the income center. If so much has been sold that it is impossible to produce everything, then it is reasonable to choose production as the income center. The market situation may change, so it is useful to periodically review the management and financial structure of the enterprise.

One company may have several income centers, for example, by types and subtypes of products, and there are probably several cost centers. In general, the management separation 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 management structure in any way. It may turn out that 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 the centers are allocated, all income is reflected in the income centers, and the costs of the cost centers are distributed among the income centers. The task of income centers is to earn maximum profit, that is, to increase income and limit expenses, including the costs of cost centers attributable to them. It is to solve this problem that profit center employees should be incentivized (including financially). Cost centers should strive to satisfy all the needs of revenue centers at minimal cost. Their material incentives should be based on encouraging the solution of this particular 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 income center actually earned, taking into account the costs of completing its tasks.

There are two common principles of allocation. First- proportional distribution of all costs according to 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 generate. Second- internal tariffs. In this case, cost centers, in agreement with income centers, determine the internal discount tariff for their services. For example, it is determined that cleaning one square meter of space costs so much, maintaining one computer workstation costs so much, and carrying out one accounting operation costs so much. Revenue centers, from a management accounting perspective, purchase these services from cost centers. The rates themselves can be easily determined by comparing the cost of the same services during outsourcing, because for most services (accounting, cleaning, IT services, etc.) there are enough companies on the market ready to perform this work. Internal rates should be lower than market rates, otherwise the point of maintaining your own staff is lost. Typically, domestic rates are chosen to be 30% - 50% below market rates. If this cannot be done (cost center costs are too high), then it makes sense to involve an outsourcer.

With the second approach, it is necessary to check that the activities 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, the accounting department and IT department need to be cleaned, IT purchases need to be reflected in accounting, and computers in the accounting department need to be maintained.

In the above example, when the sales department is the profit center and production is the cost center, the second approach turns out that the sales department is like an intermediary, working for a commission between the internal cost of the product and the price for which it sells it to external buyers. This organization has shown its effectiveness in many companies.

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

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COST CENTER

a structural division of a company that does not earn a profit and is located at budget financing at the profit center. Boning - attribute expenses to the costing center.

Dictionary of the Great Russian language business communication. 2012

"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 resident team at 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 vied with each other

Center and right center

From the book Time of Putin author Medvedev Roy Alexandrovich

Center and right center Created primarily by Yuri Luzhkov and his political allies, the Fatherland party initially declared itself 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 fade away, but I will remain: Collected Works author Glinka Gleb Alexandrovich

KOST Kost ate unevenly, sometimes full, sometimes not enough, His wife treated him unfaithfully. She loved him with a changeable love. She was twenty-eight, He was spitting blood. They parted in the autumn On the banks of Gudal He gave her twenty-eight, She

Center

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

Center The earliest and most severe 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 villages. In 1917 there was still some semblance of old life,

Sank Coast

From book Financial management– it’s simple [Basic course for managers and beginning specialists] author Gerasimenko Alexey

Sank cost As a special case of the logic of incremental cash flows, it must be said that 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 calculating the NPV project. These are the so-called sunk costs - “recessed

79. Standard-cost system

From the book Accounting: Cheat Sheet author Team of authors

79. “Standard-cost” system The “standard-cost” system is a system of cost accounting and cost calculation using standard (standard) costs, the main goals of which are cost management and control, setting real prices,

Center

From the book Three Rings of Power. Happy Fate 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 summary result of your decisions. Around us The Earth is associated with the Center - practicality, gradual progress,

3.14.3. Demographic determinism (L. Gumplowicz, 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. Gumplowicz, 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 19th and 20th centuries. Demographic determinism also continued to exist. To the demographic factor

3.5. THE BRAIN TENTER OF THE “SYNDICATE” IS THE “SI CENTER”. PROJECT "ANTI-RUSSIA"

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

3.5. THE BRAIN TENTER OF THE “SYNDICATE” IS THE “SI CENTER”. PROJECT "ANTI-RUSSIA" It is clear that the preparation of operations on a global scale requires a balanced formulation of tasks, analysis possible ways her decision, informed choice optimal option placement of financial resources for their

CENTER OF GRAVITY AND CENTER OF POWER

From the book Da-tse-shu [The Art of Suppressing Combat] author Senchukov Yuri Yurievich

CENTER OF GRAVITY AND CENTER OF POWER Configurations of circles, figures of eight, knots and loops that make up the fighting technique can be very different. When 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. How much it cost? Is it possible to do it cheaper? Shopping secrets

From the book Vacation without intermediaries author Romanovskaya Diana

Chapter 9. How much it cost? Is it possible to do it cheaper? Shopping secrets It's no secret that the same thing can be bought both very expensive and very cheap. It depends on the 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) by the author TSB

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

8/revenue center or profit center

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

8/income center or profit center Alexey Demin, director of TPK Tekhprom LLC, Novosibirsk The idea of working under franchising 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 ATTACK RUSSIAN CENTER UNDER ATTACK 10.10.2012

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

Center of power No. 5 Center of power No. 5 Strategic game: Islamic factor Shamil Sultanov 09/12/2012

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

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

Allocation, internal tariffs, prices

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

"cost center" in books

2. Cape Coast - Kumasi

Center and right center

COST

Center

Sank Coast

79. Standard-cost system

Center

3.14.3. Demographic determinism (L. Gumplowicz, 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.)

3.5. THE BRAIN TENTER OF THE “SYNDICATE” IS THE “SI CENTER”. PROJECT "ANTI-RUSSIA"

CENTER OF GRAVITY AND CENTER OF POWER

Chapter 9. How much it cost? Is it possible to do it cheaper? Shopping secrets

Cape Coast

8/revenue center or profit center

RUSSIAN CENTER UNDER ATTACK RUSSIAN CENTER UNDER ATTACK 10.10.2012

Center of power No. 5 Center of power No. 5 Strategic game: Islamic factor Shamil Sultanov 09/12/2012