Auxiliary cost centers

Also known as: Initial cost center, ancillary cost center, secondary cost center

Auxiliary cost centers represent cost centers in a company that are not directly related to the manufacture or sale of manufactured goods, but relate to cost centers that have a supporting influence on production.

Definition / explanation

The auxiliary cost centers, which are also referred to as pre-cost centers, secondary cost centers or ancillary cost centers, include, for example, the infrastructure services required for the production process, such as energy supply, administration or internal goods transport.

Diese entstehenden Kosten werden im Rahmen der Cost center accounting zur Verrechnung der innerbetrieblichen Leistungen mittels Aufschlägen in die Gesamtkalkulation eingebracht. In der betrieblichen Praxis wird im Zuge der Verrechnung dabei vor allem auf die Wahl verursachungsgerechter Bezugsgrößen geachtet.

Sample calculation

A packaging manufacturer buys plastics for 25,000 euros in a given month and posts these costs to the main cost center. The associated costs for the warehouse are 1,000 euros. Added to this are the costs of 4,000 euros for the warehouse logisticians involved.

€ 1,000 (warehouse) + € 4,000 (warehouse logistician) = € 5,000

This results in an auxiliary cost center with costs of 5,000 euros, which corresponds to a surcharge of 20 percent. Material costs of 30,000 euros are included in the final calculation.

25,000 € (plastics) + 5,000 € (auxiliary costs) = 30,000 € (material costs)


  • Auxiliary cost centers are not directly related to the manufacture of a product
  • only have supporting functions in the production process
  • The costs of the auxiliary cost centers are offset against the costs of the main cost centers
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