If we define cost center cat instead of FA does that sever the same purpose reporting wise. I want to know that how diff is a cost center cat than FA and if is the impact if business plans to use cost center cat instead of FA for similar kind of reporting
please let me know your thoughts as this is a critical decision.
thanks in advance.
Cost center category is a grouping of cost centers for eg:
> Production etc..
Functional Area divides the corporate expenditures based on "functions" (i.e, activities: what a company does) like administration, sales, marketing etc..
Although cost center category and functional area may "seem" the same, they are not.
Cost center categories would also include general service cost center and allocation cost center, these cannot be termed as Functional Area.
Whether to use CCC or FA depends on your needs.
Cost center categories will be more detailed.
FA will be broad as it will only include broad functions of a company.
Assign points if info helps