When revenues and costs are dealt with on a departmental basis, each department is known as a:

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When revenues and costs are dealt with on a departmental basis, each department is known as a cost centre. Cost centres are responsible for managing and controlling the costs associated with their department. They do not generate revenue but incur costs such as salaries, rent, utilities, and supplies. By tracking and analyzing these costs, cost centres can identify areas where they can cut costs or operate more efficiently.

When Revenues and Costs Are Dealt with on a Departmental