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Shadow cost center - How To Discuss

Writer Alexander Torres

Shadow cost center,

Definition of Shadow cost center:

  1. A fictitious department containing no staff with a budget that exists only on paper. An example of using shadow cost centers for cost allocation purposes within a business would be assigning cost centers and a budget to the companys major expenses, such as rent, utility bills and capital depreciation, even though no one is actually employed by those cost centers.

Meaning of Shadow cost center & Shadow cost center Definition