Definition Investment Center. Description.
An Investment Center is a special type of profit center,
whose manager not only has profit responsibility but also some influence on
capital expenditures. Managers of these units are responsible for both operating
profit and for the capital used to generate these profits. Typically managers
of these organizational entities are measured on
Return on Assets and
Economic Value Added.
In other words, these units have both
and balance sheet responsibility. They are often composed of several profit
Typical examples of these major organizational entities are
Divisions of large enterprises and Strategic Business Units.
Investment Centers Special Interest Group
Strategic Business Unit
| Profit Center |
Cost Center |
Revenue Center |
Expense Center |
| RONA |
Activity Based Costing |
Balanced Scorecard |
CSFs and KPIs |
Value Based Management
| Transfer Pricing