Cost Centre

The costs involved with a specific department, activity or defined area.
There might, for example, be a cost centre for a particular sports pitch, grounds team, or renovation activity.
The two main types of cost centre are:
1. Production costs centres, which might be the production of a sports pitch and all costs related to the provision of this are allocated to the pitch. These are often costs which are fairly well defined.
2. Service cost centres, which might be the services, such as IT, finance, or marketing support which are provided to ensure the management of the sports pitch can function to its maximum potential. Service cost centres are often called indirect costs because they are not directly involved with the maintenance of the pitch.