investment centers

An investment center is a part of a business responsible not only for generating revenue and controlling costs but also for managing its own investments to earn a return. It’s evaluated based on its ability to generate profits relative to the assets it employs. For example, a division that can decide how to allocate its resources and investments, and then is measured by how effectively those investments grow, functions as an investment center. This approach helps organizations assess performance on both operational efficiency and the ability to generate returns on invested assets.