Register now or log in to join your professional community.
Cost Centre is a department within an organization that does not directly add to profit, but which still costs an organization money to operate.
Cost Elements form categories of costs that help management to track costs according to internal accounting policies. The primary costs elements are more or less mirror images of P & L expenses accounts from the financial chart of accounts.
Cost center is the organizational unit within a controlling area that represents a location where costs occur. (such as departments within a company or workshop) whereas cost element are Profit and Loss GL accounts which create in finance. (such as administration exp, sales expense, stationery expenses)
Cost center is a center where all costs are allocated into a specific department's cost center
Cost element is the nature of cost i.e. General Ledger Account
A Cost Center is like a department. This department has a person responsible for it, it has a name (i.e., Training, Production Planning, R&D, etc.), it belongs to a particular Company Code, etc. When you go to work each day you work for a Cost Center and this Cost Center is where your Salary is charged. Take a quick peek at the Cost Center Master Data which you can access through transactions code KS.
A Cost Element is like a G/L account. It enables charges to be posted to your Cost Center (department). When your payroll check is issued, the charge for your Salary is 'posted' to your Cost Center with a Cost Element
Cost Center is a center in which costs are incurred. e.g; department or plant or region, project, etc.
Cost Element represents expense a/c and revenue accounts. In controlling you call P&L items as cost elements.
COST CENTER is part of an organization which represents the segment of the company for which costs are collected and reported. It can be department and/or branch, created for the purpose of accounting or operational purpose or to fix the responsibility that may exist for an individual responsible.
COST ELEMENT is a chart of accounts in GL which are created for the purpose of P&L reporting not required reconciliation. The Cost object could be material or an activity created for the sole purpose of controlling and reporting expenses and/or costs
Cost centre is a cost object/collector (e.g. department, project); the entity that allows you to analyse all sorts of costs which are posted to it. Cost element is a nature of cost (e.g. salary, rent). Primary cost elements represent P&L G/L accounts and secondary are used for internal CO processes (allocations).
1.cost center= is a departmental term like=admin cost
2. cost element =is a GL term like= stationary cost,ta/da cost, fee etc.
Cost centres are centres in which all the cost are incurred and accumulated. eg. workshop, department ,projects etc.
Cost elements are GL account ( Revenue and expenses account ) eg ; salary , rent , wages etc.
Cost center is the area where costs are accumulated and charged. cost element is the items charged under separate heads individually.
Cost Center is a profit center where as cost elements are expense heads.
Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.
