A service department is usually evaluated as a profit center.

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A service department is typically evaluated as a cost center rather than a profit center as it is often seen as a support function rather than a direct revenue-generating department. Its purpose is to provide support to other departments to help them generate revenue. As a cost center, the service department's performance is evaluated based on how efficiently and cost-effectively it delivers its services.

A Service Department Is Usually Evaluated as a Profit Center