In accounting, a Cost Centre refers to a specific department or function within an organization where costs are tracked but which does not directly contribute to profit generation. It is a location or function within the company where expenses are incurred for operational purposes, but revenue is not directly measured. Examples of cost centers include HR, maintenance, or administrative departments.

In the trial balance, cost centers typically do not appear as standalone accounts because the trial balance lists general ledger accounts and their balances. The trial balance is primarily used to ensure that total debits equal total credits in the ledger. However, if cost centers are tracked in the accounting system, expenses related to each cost center can be allocated to various expense accounts within the general ledger.

If an organization is using cost accounting or managerial accounting, the expenses of different cost centers are often tracked using supplementary reports or systems, like cost center reports, which break down total expenses by the responsible department or unit. These reports can be used to monitor spending at a more granular level, though the overall totals would still flow into the trial balance under general ledger expense accounts.

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