Cost centers can be permanent such as a production facility or temporary such as a one-time job.
Cost centers are similar to general ledger departments. Typically cost centers represent greater detail than departments where several cost centers are cross-referenced to one department. Phases Activity within cost centers is represented by phases. Phases can be revenue, labor expense, materials, etc. Typically, phases represent greater detail than GL accounts where several phases are cross-referenced to the same GL account for automatic posting.