Cost Centers are fully self contained financial divisions within the company, that each contribute to the overall financial state of the company. They help to clarify who is generating revenue, where funds are being spent, and by whom. Project costs and revenues that are generated can be designated as belonging to a specific Cost Center.
Within each Cost Center, the hierarchy can be further classified into sub-cost centers within each larger cost center. Employees and Managers can be assigned to Cost Centers, which controls their access rights on viewing/modification privileges for financial documents.
(Screenshot of "Cost Center" homepage, displaying what employees are part of the cost center, and the Cost Center's hierarchical location.)
Located at the bottom of the Cost Centers home page is a link to create New Cost Centers.