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What do you mean by Revenue Centre?

Updated: 9/25/2023
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Q: What do you mean by Revenue Centre?
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What is a example of a revenue center?

Sales department is an example of revenue centre as this department is mainly responsible for collection of revenue and sales of products.


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Yes for revenue purposes. But it is also a cost centre for other purposes. And in disciplines other than finance, it will have other appropriate descriptors.


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Cost Center: it is that department of a company whose manager is responsible for cost spending only like production department.Revenue Center: it is that department whose manager is only responsible for revenue for example sales department.Profit Center: it is that department whose manager responsible for cost as well as revenue of department that department is called profit centre like "Autonomous Business Units".


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