Finance & Corporate Jargon · Managing Director level

"Cost center"

"Cost center" means a department that spends company money but does not directly generate revenue, such as IT, HR, or legal.

Say this instead: non-revenue team

How "Cost center" shows up at work

Technically an accounting term, used in practice as a polite way to remind a team that finance has noticed them. People who run cost centers tend to hear it most during budget season.

Buzzword

Marketing is a cost center, so the CFO wants line-item justification for every campaign.

Plain English

Marketing does not bring in direct revenue, so the CFO wants a breakdown of every campaign expense.

Corporate Rank: Managing Director · Category: Finance & Corporate Jargon

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