Cost Centers and Activity Types 
Cost Center Accounting determines which costs were incurred in individual cost centers. Products and orders are debited with these costs based on the cost center activities they used.
In costing with quantity structure, the cost center is determined through the work center. For more information, see:
In unit costing (costing without quantity structure, reference and simulation costing), you enter the cost center or work center manually in the list screen. For more information, see List Screen of the Unit Cost Estimate and Overhead in Base Object Costing.
Features
Cost centers are the organizational units where costs are incurred.
You plan the following for each cost center:
Which activities are performed by the cost center
Which costs are debited to products when they use the activities of the cost center
To check the master data for the cost center, choose 
Accounting 
Controlling Cost Center Accounting Master Data Cost Center Individual Processing Display 
.
The activities performed by a cost center are expressed in activity types. You specify the activity types in the work center. You use activity type planning in Cost Center Accounting to assign activity types to cost centers.
Activities are valued using activity prices, which are either set manually or calculated automatically using cost planning in the form of iterative activity price calculation. Here, the planned costs of a cost center which are assigned to the activities are divided by the planned activity (or by capacity, depending on your system settings) to find iterative activity prices.
Actual costs are accumulated for each cost center. You can calculate actual activity prices for the individual activity types and use these values in costing to value the activities.
The following are relevant for costing:
Activity type category
The activity category determines whether the activity type is taken into account in costing.
Cost element
The activity type must be assigned to a secondary cost element so that the costs for this activity type can be included in costing under this cost element. This cost element must have cost element type 43 (internal activity allocation).
The valuation date of the cost estimate must fall within the validity period of the cost element.
To check the master data for the activity type, choose Accounting Controlling Cost Center Accounting Master Data Activity Type Individual Processing Display .