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SAP CO - Cost Center
  • 时间:2025-01-05

SAP CO - Cost Center


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A Cost Center is defined as a component in an organization that adds to the cost and indirectly adds to the profit of the organization. Examples include Marketing and Customer Service.

A company can classify a business unit in three ways −

    Profit center,

    Cost center, or

    Investment center.

The simple and straightforward spanision in an organization can be classified as cost center because cost is easy to measure.

Cost Center Hierarchy

The hierarchy of a cost center looks as follows −

Cost Center Hierarchy Advertisements