Cost Center

This is a division of a company that adds costs to the product.

John’s department spends $50,000 to design the product. When all the work is done, the company has not earned a penny. This department is a cost center. Penny is the head of the sales department. When her department has sold the product, the company has made money. Penny works in a profit center.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/cost-center/