Companies evaluate investment centers using the same measures as the profit centers.

Question

Quizplus · Accepted Answer

Investment centers are evaluated using additional measures such as return on investment (ROI), net present value (NPV), and internal rate of return (IRR) that are not typically used for profit centers. This is because investment centers make significant capital investments in projects or assets, and their performance is more focused on the long-term returns of those investments rather than short-term profitability.

Companies Evaluate Investment Centers Using the Same Measures as the Profit