Investment Center

Knowledge Center

What is an Investment Center? Meaning.

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 income statement and balance sheet responsibility. They are often composed of several profit centers.

Typical examples of these major organizational entities are Divisions of large enterprises and Strategic Business Units.

Compare with: Strategic Business Unit  |  Profit Center  |  Cost Center  |  Revenue Center  |  Expense Center  |  Performance Management  |  RONA  |  Activity Based Costing  |  Balanced Scorecard  |  CSFs and KPIs  |  Value Based Management  |  Transfer Pricing

Return to Management Hub: Change & Organization  |  Decision-making & Valuation  |  Finance & Investing  |  Human Resources

More on Management  |  Return to Management Dictionary  | 

This ends our Investment Center summary and forum.