If a help desk is considered an expense to the company, what is it referred to as?

When a help desk is considered an expense to the company, it is classified as a cost center. A cost center is a department or function within an organization that does not directly generate profits but is responsible for incurring costs to support the operations and services of the organization.

The primary focus of a cost center is to control expenses and optimize resource usage. The help desk fits this definition because it is essential for providing support and assistance to employees or customers, thereby enabling the company to operate efficiently, even though it does not directly contribute to revenue generation.

In contrast, a revenue center is responsible for generating income directly, while a profit center not only generates revenue but also manages expenses, with a focus on profitability. A service center, while it provides services, may not fit neatly into financial classifications like cost center or profit center, as it may also take on aspects of both. Therefore, labeling a help desk as a cost center accurately reflects its role in the organization.