Service center
A service center is a service area . This includes one or more cost centers that usually do not generate their own income from customer service. Services are then provided for other cost centers (or company areas) that are offset internally ( internal activity allocation ).
If service centers are not fully utilized by their own company departments, they can become active in the external market and generate income independently. Such external orders are intended to keep own costs low.
An example of a “typical” activity of a service center is the toolmaking of an automobile manufacturer for its own operational purposes or a passively functioning call center as a service provider for customers.