[CUSTOM SOLUTION] Revenue Center

A business needs to have both a strategic plan and a budget. The strategic plan lays out the direction and goals of the business and guidelines for actions to achieve those goals, while the budget looks at the money needed to support achieving those goals. Budgeting is only one part of the strategic planning process (Carol, 2021). There are four types of responsibility centers:Cost Center – The majority of managers are responsible for cost centers. Revenue Center – While revenue is a major factor for most businesses, revenue centers are actually the smallest portion of responsibility centers. Profit Center – These responsibility centers are also quite common. Investment Center – While we spend a lot of time discussing profit, asset management is just as important. In short, a responsibility center is an organization unit for which a manager is held accountable. A responsibility center is like a small business, and its manager is asked to run that small business to achieve the objectives of the larger organization (Putra, 2012). According to the video The Importance and Use of Budgets within an Organization, a budget is a detailed financial plan that quantifies future expectations and actions relative to acquiring and using resources. It is imperative that organizations carefully plan their financial affairs to achieve financial success.***half page two references

 

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