Revenue center

[3] Revenue centers only measure the output (in fiscal standings) and are therefore marketing establishments which are exempt from profit generation and accountability thereof.

For example, the manager of a revenue center is responsible for the expenses of his department (such as maintenance costs).

[8] In a sales office (the most widespread example of a revenue center), maintenance costs can be construed as rent, salaries, taxes and security.

This is delegated to him because both of the spheres require extensive knowledge that is explicit to the local market.

This reduces cost by shortening the distribution channel and cuts out wholesalers and retailers.

Setting prices on products or services is an example of revenue center managers being unable to undertake marketing decisions.

[7] Businesses may decide to open revenue centers when entering new markets or industries.