Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 2

What is meant by the term investment center? How is the financial performance of investment centers measured?

Step 1 of 2

Term investment center:

The company uses their capital to give the profit in a straight way for company’s profitability or can say that it is the treated unit which is used to measure against the use of capital to the cost or profit for the company, known as term investment center or investment division.