Definition
A cost center is part of an organization that does not produce direct profit and adds to the cost of running a company.
The various activities type cost and work done will be flow into the cost center.
An example of a cost center production flow.
Activity Type
- A unit in a controlling area that classifies the activities performed in a cost center.
- Activity types in production cost centers are machine hours or finished units.
- Work centers only have an available capacity on working days. In order to calculate the available capacity, a factory calendar has to be maintained, in which the working days are defined.
- You define the work start, work finish and break times for all work centers in a shift definition.
- In shift sequences, you maintain the sequence of individual shift definitions for all shift sequences.
- The cost center that you want to assign the work center must exist and belong to the same controlling area as the work center plant.
- At XYZPLT we would be defining 3 Activity Types: 1) Machine, 2) Setup, 3) Labor
