Accounting Dictionary

Service Department

A service department is a cost center that does not produce output, but rather helps those departments that do.

For example, in a college, the English department generates revenue when students pay for English classes, but the technical service people who help the English professors with computer problems generate no income. The techs are a service department.

Sign Up to Learn More!

Join our mailing list today to get notified of new discount offers, course updates, Roger CPA Review news, and more!

Scroll to Top