Service center

A service center is a department that provides services to other departments within a business. Examples of service centers are the janitorial department, maintenance department, and information technology department. The costs of these departments may be charged to the using departments. If the cost of a service center appears excessive to a using department, the manager of the using department may have the option of acquiring the service from a third party.

Related Courses

Cost Accounting Fundamentals 
Cost Management Guidebook