Cost center accounting

What is cost center accounting

The cost center accounting is used to determine where the costs were incurred in the company. It is the second level of cost accounting. She lies in front of her Cost type accountingfrom which they the Overhead takes over. This is followed by cost unit accounting, to which it allocates the overheads.

The cost center accounting includes the operating accounting sheet and the internal cost allocation.

With the help of cost center accounting, the overhead costs incurred in the cost centers are determined as surcharges on the individual costs incurred in the relevant cost centers. The respective surcharge rates are transferred to cost unit accounting, where the overhead costs are proportionally allocated to the cost units.

Cost center accounting tasks

  • Determination of the company's individual cost centers
  • Preparation of a corresponding cost center plan
  • Distribution of overheads from cost type accounting
  • Implementation of the internal cost allocation
  • Preparation of the calculation
  • Determination of the specific calculation rates
  • Control of profitability
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