Revenue Center

Description of Revenue Center. Explanation.

Definition Revenue Center. Description.

A Revenue Center is responsible for selling an agreed amount of products or services. Usually its manager is responsible to maximize revenue given the selling price (or quantity) and given the budget for personnel and expenses.

Generally, revenue centers work best if managers know customer demands well and are able to determine the optimum price/quantity combination and product mix. Care must be taken not to allow revenue centers to sacrifice profit for revenue too much.

Typical examples of these organizational entities are Sales organizations.

Compare with: Strategic Business Unit  |  Profit Center  |  Cost Center  |  Expense Center  |  Performance Management  |  RONA  |  Activity Based Costing  |  Balanced Scorecard  |  CSFs and KPIs  |  Value Based Management  |  Transfer Pricing

Return to Management Hub: Change & Organization  |  Decision-making & Valuation  |  Finance & Investing  |  Human Resources  |  Leadership

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End of description Revenue Center. An explanation.