REVENUE CENTRES

Question 1

What is revenue centers?

Answer 1

-Users revenue drivers in evaluating performance
- consider Factors that affects sales volumes
- If service firms : Focus on the quality of the services

Question 2

Why marketing departments can be either revenue or cost centers?

Answer 2

Revenue : marketing department can manages the revenue generating process and produces revenue reports for evaluation
Cost : if incur two types of costs – order getting (advertising and promotion) , order-filling (warehousing, packing and shipping)

Question 3

What is the challenges faced with cost and revenue SBUS

Answer 3

• Have a mistakes of evaluating the costs
• Basic performance evaluation on revenue can lead to undesirable consequences