Cost space

A cost center is the smallest possible accounting area within a cost center accounting . Cost centers are defined below the level of the cost centers if there are different service-providing units within the cost centers that are to be recorded in cost accounting with different cost rates . Cost centers can be set up, for example, if there are several production systems or work areas within a cost center and their differences in the cost structure should be taken into account when they are passed on to the cost unit.

Cost accounting

The cost center accounting (also space cost accounting ) represents a refinement of the cost center accounting. The cost center is divided into cost centers in order to be able to form separate cost rates . A separate interest rate is formed for each cost center and a separate reference value is selected. The cost planning is carried out separately for each reference value. The actual costs are assigned globally to cost centers.

Disadvantages of cost accounting:

• Cost control based on individual cost centers is not possible (only a target / actual comparison of an entire cost center is possible);
• Planning errors occurring in the individual cost centers are therefore not recognizable.

literature

• Johann Steger: cost and performance accounting. Introduction to corporate accounting, the basics of full cost, partial cost, planned cost and process cost accounting. Oldenbourg, Munich 2010, ISBN 978-3-486-59672-4 .