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What is a cost center? A cost center is often a department within a company. The manager and employees of a cost center are responsible for its costs but are not responsible for revenues or investment decisions. A manufacturer's cost centers include each of its production departments as well as the manufacturing service departments such as the maintenance department or quality control department.
1 Client 2  : Cost allocation: the kind of accounting that allows assigning and allocating revenues and expenses to the different cost centers of the company. 3  Cost center: it is a part of the organization (usually identified with a functional area) that we use to allocate revenues and expenses. Allocation to the target cost centers with the same sign of credit or debit. 2  Allocation to the source cost center with the inverse sign of credit or debit, for example, the next table shows the final result of one allocation.