What is a cost center

Last updated: 2025-08-12

A cost center is a real or virtual department within a company where costs are tracked based on responsibility. Cost centers are essential for business management and cost accounting. They are one type of cost object, alongside things like orders and projects.

How does a cost center work?

  • costs are assigned to the cost center
  • employees (and their costs) are assigned to the cost center
  • assets, equipment (and their costs) are assigned to the cost center

In Aptien, you manage a centralized list of cost centers that you can link to employees, assets, equipment, and other records. This allows you to view an online summary of all assigned items from the central dashboard.

How to manage cost centers in Aptien?

  • Cost center is a real or virtual organizational unit of a company to which costs are assigned based on responsibility.
  • Cost centers are the foundation of corporate controlling and cost accounting. It is one of the so-called cost objects, for example alongside orders and projects.