Management will most likely behave the same way if a department is structured as a revenue centre or if the same department is structured as a profit centre.

Question

Quizplus · Accepted Answer

Management is likely to behave differently in a department structured as a revenue centre compared to a profit centre. In a revenue centre, the goal is to generate revenue, while in a profit centre, the focus is on both generating revenue and controlling costs to maximize profits. This difference in structure is likely to impact the way management makes decisions and allocates resources.

Management Will Most Likely Behave the Same Way If a Department