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Which of the following statement(s) about revenue centers is/are true?

I.     Sales and marketing departments are examples of revenue centers.II.     In revenue centers, outputs are measured in monetary terms and directly compared with input costs.III.    A revenue center cannot be responsible for changes in profit levels.(a)    Only (II) above(b)    Only (III) above(c)    Both (I) and (II) above(d)    Both (I) and (III) above(e)    All (I), (II) and (III) above.

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2015/05/11
Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

(d)

The following statements about revenue centers are true:

              I.     Sales and marketing departments are examples of revenue centers.

              III.    A revenue center cannot be responsible for changes in profit levels.

              Statement (II) is not true because in revenue centers, outputs are measured in monetary terms but are not directly compared with input costs. Hence, option (d) is the answer.

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