---
title: "Cost center"
description: "Cost center — A unit — a department, a team, a location — that incurs costs but earns no revenue of its own, and to which those costs are charged. It is a dimension on the entry, not a separate account."
canonical: "https://lopifi.com/glossary/cost-center"
---

# Cost center

> Cost center — A unit — a department, a team, a location — that incurs costs but earns no revenue of its own, and to which those costs are charged. It is a dimension on the entry, not a separate account.

Source: https://lopifi.com/glossary/cost-center
Part of: Lopifi — Planned: US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

---

**What is cost center?** In accounting, cost center means a unit — a department, a team, a location — that incurs costs but earns no revenue of its own, and to which those costs are charged. It is a dimension on the entry, not a separate account.

## Words this system refuses for it

- profit center (which also earns revenue)
- department unqualified

- **Category:** Core ledger
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/lexicon)
- **Related:** dimension, account, revenue