Question

Difference between profit centre and investment centre

Answer 1

profit centre success is defined by there profit and totally focus on profit percentage, while investment centre is considered both profit and risk involve.

Answer 2

Profit center is a branch or division of a company that is accounted for on a standalone basis for profit calculation.

A profit center is a business unit or department within an organization that generates revenues and profits or losses. 






An investment center is a classification used for business units within an enterprise. The essential element of an investment center is that it is treated as a unit which is measured against its use of capital, as opposed to a cost or profit center, which are measured against raw costs or profits.