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Reply from kulkarnigirish on May 23 at 1:01 PM A Cost center is one which fetches the cost, sub departments as mentioned
by you contains more people & if there activities are fetching costs which
are significant other then the salary (means not only salary but other
expenses too) then you can create sub cost centers,this will help you to
analyze cost vs performance of each sub department, however if the people
are not much & activities are are not much significant then each department
should be considered as a Cost center and no need to create any sub cost
centers, your information flow in both cases should be set properly to heat
the right cost to right cost center.
| | | ---------------Original Message---------------
From: allaf-rudwan
Sent: Monday, May 23, 2016 6:01 AM
Subject: Cost Centers for Head Office - Is It Standard to Create Cost Center for Each Sub Department
Hi,
We are designing cost center hierarchy for our company
which having : finance department , HR , ... etc
Now the question, is it standard to create cost center for each sub department?
Let's say in finance department there are : AP - AR - Cash - GL - Bud & Reporting.
Is it necessary to create cost center for each sub division? |
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