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Cost Centers are configured in Organizational Structure | Cost Centers and Rollups.

Cost centers allow you to model your organization's structure within Projector in a multi-level hierarchy. Generally business units, departments, practices, classes or cost centers can be modeled as cost centers. Engagements belong to a single cost center and resources can move from one cost center to another over their lifetime within the organization. Projector utilizes cost centers to define permissions (i.e., what users can do which activities for what parts of the organization), analytical reporting structures (e.g., what was the profitability of the Eastern Region compared to the Western Region), and accounting mappings (e.g., where accounts receivables generated by Eastern Region projects should get routed).