shadow cost center


A fictitious department containing no staff with a budget that exists only on paper. An example of using shadow cost centers for cost allocation purposes within a business would be assigning cost centers and a budget to the company's major expenses, such as rent, utility bills and capital depreciation, even though no one is actually employed by those cost centers.

Related Videos

Have a question about shadow cost center? Ask for help in the
Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z