Process costs of the cost centers

What is meant by Process costs of the cost centers?

The term "Process Costs of Cost Centers" refers to the costs incurred within a cost center for specific business processes. This method of cost accounting enables a detailed analysis and allocation of costs to specific activities within a cost center, leading to more accurate cost calculation and control.

Typical software functions in the area of "Process Costs of Cost Centers":

1. Process Modeling: Creation and visualization of business processes within cost centers.
2. Cost Allocation: Assignment of costs to individual process steps and activities.
3. Process Cost Rate Calculation: Automatic calculation of costs per process run.
4. Capacity Planning: Analysis and optimization of resource utilization in cost centers.
5. Process Optimization: Identification of inefficiencies and improvement potentials in workflows.
6. Cross-Cost Center Analysis: Comparison and aggregation of process costs across multiple cost centers.

Examples of "Process Costs of Cost Centers":

1. Order Processing: Calculation of costs for the entire order processing in the sales cost center.
2. Material Receipt: Determination of process costs for goods receipt inspection in the logistics cost center.
3. Invoice Processing: Analysis of costs for the invoice review and approval process in the accounting cost center.
4. Production Preparation: Calculation of process costs for setting up machines in the manufacturing cost center.
5. Customer Service: Determination of costs per customer inquiry in the service cost center.
6. Product Development: Analysis of process costs for individual development steps in the R&D cost center.