Management - 12manage

Expense Center

Description of Expense Center. Explanation.




  

Join our management communities

Register a Free Membership


Full Name:*
Company:  
Street + nr:*
City:*
State:  
Postal Code:*
Country:*
E-mail:* (This will be your username)

I agree to the Terms of Service.





 

Definition Expense Center. Description.

 

An Expense Center is a cost center with an output that cannot be easily measured. Managers of these units typically have fixed budgets and should maximize service or output within that budget. Because the cost per output is difficult to measure, the users of an EC are generally not charged directly for its services. Rather these entities are paid via the overhead costs. As a result, the users of an EC tend to over consume its services. This then leads the manager of the EC to request additional budget.

 

Typical examples of these organizational entities are Human Resources, Accounting, Public Relations, Research and Development.


Forum

Comment on this Page

Compare with: Strategic Business Unit  |  Profit Center  |  Cost Center  |  Revenue Center  |  Performance Management  |  RONA  |  Activity Based Costing  |  Balanced Scorecard  |  CSFs and KPIs  |  Value Based Management  |  Transfer Pricing

 

Return to Management Hub: Change & Organization  |  Decision-making & Valuation  |  Finance & Investing  |  Human Resources  |  Leadership

 

More on Management  |  Return to Management Dictionary  | 

 

End of description Expense Center. An explanation.

 

 

Copyright 2009 12manage - The Executive Fast Track. V10.4 - Last updated: 11/21/2009. All names tm by their owners.