All 34 The Budgeting Process questions
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Who is responsible for preparing a budget? What is a functional (departmental) budget? What is the difference between planning and control aspects of budgeting? What is a cost center? What is the role of the budget committee? What is a budget manual? What is the principal budget factor (limiting factor)? What is budgetary slack and why does it matter? What is the typical sequence of steps in preparing a budget? What are the criticisms and limitations of traditional budgeting?
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Budgeting & Forecasting › The Budgeting Process

What is a revenue center?

Beginner

Answer

A revenue center is a responsibility center accountable primarily for generating revenue (e.g., a sales region), controlling revenue-related outcomes but not the full costs of production. Its budget focuses on sales targets, and performance is measured against revenue budgets and sales variances.
Real-world example A regional sales office is a revenue center judged on hitting its sales budget.

Common follow-ups: What is it mainly accountable for? | How is its performance measured?

Variance Analysis The Budgeting Process The Budgeting Process
All 34 The Budgeting Process questions