Operating units
An operating unit is an organization that is used to divide the control of economic resources and operational processes in a business. People in an operating unit have a duty to maximize the use of scarce resources, improve processes, and account for their performance.
The operating units in finance and operations apps are:
(B) Business unit - A semi-autonomous operating unit that is created to meet strategic business objectives. It is used for financial reporting that is based on industries or product lines that the organization serves independently of legal entities.
(C) Cost center - An operating unit in which managers are accountable for budgeted and actual expenditures. It is used for the management and operational control of business processes that span legal entities.
Reference:
https://learn.microsoft.com/en-us/training/modules/plan-implement-legal-entities-finance-operations/4-org-hier-u