My answer to Should I create separate businesses for different activities or use one business for multiple services?
Answer by Ken Larson:
Many of my clients choose to use a multiple cost center approach under a single company umbrella.
A cost center is a single, pricing, accounting, and billing entity within a company, organized for a group of business lines and clients with close similarities for technical and management purposes. It has its own unique overhead rate and houses the projected direct cost labor dollar base and associated expenses for that base.
Cost centers are managed individually and then summarized at the company level to lend visibility into each cost center’s performance. This requires a general ledger set-up to do so and a management lead in each cost center.