Difference of work center Vs Cost center

Question

Hi,
Let me know what is the difference between cost center vs work center with definition?
Thanks and regards
Ramesh

Answer 1

Cost Center  One of the three types of cost objects currently used in the SAP system. Cost centers are centrally allocated funds, budgeted on the fiscal year.
Cost centers are used to track where cost occur in the organization.
As costs are incurred, they are assigned or posted to the appropriate cost center.
The posting and assignment of costs to cost centers is a critical step in using the CO module.
Cost centers are organized in a Standard Hierarchy.
The Cost Center Standard Hierarchy is used to structure the cost centers in an organization.
All cost centers must be entered in the Standard Hierarchy.
To display the standard hierarchy follow the menu path:
Accounting ->Controlling ->Cost Center Accounting ->Master data ->Standard Hierarchy ->Display
Work center its specific to which application you are using.
Logistics - General (LO)
An organizational unit that defines where and when an operation must be performed.
The work center has an available capacity. The activities performed at or by the work center are valuated by charge rates, which are determined by cost centers and activity types. Work centers can be:
Machines
People
Production lines
Groups of craftsmen
Quality Management (QM)
A place at which inspections are conducted.
In the SAP System, work centers are entered in the inspection operations. Several inspection characteristics can be inspected for each work center or inspection operation.
Warehouse Management
A physical unit in the warehouse, in which warehouse activities such as packing, distribution, and weighing, can be performed.
Example
Packing station
*Look into the following link for SAP Glossary *
http://www.sapfans.com/sapfans/sapfaq/sapgloss.htm#sectW
Hope this helps
Vinodh Balakrishnan