What is Cost Center Accounting (CCA)?

Cost Center Accounting (CCA) is an accounting method that tracks costs and revenues by organizational units, called cost centers. These cost centers don't directly generate profit but contribute to the overall profitability of the company. CCA is commonly used for internal reporting and management decision-making, providing insights into the cost efficiency of different departments or activities within an organization. It helps in controlling costs, allocating resources, and evaluating the performance of cost center managers.