Final cost center

Also known as: Main cost center, primary cost center

In corporate cost accounting, final cost centers are cost center categories that are used to offset internal services. Final cost centers flow directly into the calculation.

Definition / explanation

Unlike with ancillary cost centers (Auxiliary cost centers) there is no offsetting or transfer to other, higher-level cost centers at the end cost center. The result of a final cost center is used directly without any further allocation.

Summary

  • Final cost centers are cost center categories in operational cost accounting
  • Final cost centers have a direct influence on the calculation of a product or service
  • the cost item of a final cost center is closed internally
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