<Li> Research and Development </Li> <P> Cost Centers can be trimmed down to the smallest segregated tasks within Departments . It is not necessary to consider departments as outright cost centers . Some companies adopt a different approach when treating cost centers . </P> <P> The main function of a cost centre is the tracing of all expenses linked with a certain function . For example, by considering a call centre as an independent unit, the firm can calculate how much it is spending each year for its 1 - 800 support service . If a cost centre is not considered independent then it would take a lot of effort in measuring the cost of providing this service because it will include dividing up the company's entire personnel and phone bills by department each month . </P> <P> There are numerous benefits of a cost centre which include: </P>

Difference between cost center and pre defined cost center