Difference between cost center and work center.

Cost center is place where you incur your costs.

Work center is a place where an operation is performed by a person/machine (group).

Link between them:

The activities performed at or by the work center are valuated using charge rates which are defined/determined by cost centers and activity types.

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One thought on “Difference between cost center and work center.

  1. So if Work center is a place where an operation is performed by a person/machine (group), what field would Company be in? (The company which is responsible for the operation)

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