The main difference between the profit centre and investment centre is
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Answer:
The key difference between a profit center and investment center is that a profit center is a division or a branch of a company which is considered to be a standalone entity that is responsible for making revenue and cost related decisions whereas an investment center is a profit center that is responsible for making .
Answer:
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Explanation:
The key difference between a profit center and investment center is that a profit center is a division or a branch of a company which is considered to be a standalone entity that is responsible for making revenue and cost related decisions whereas an investment center is a profit center that is responsible for making investment decisions in addition to revenue and cost related decisions. Selection of operating entities such as profit centers or investment centers is a decision that should be made by the top management of a company. Top management intervention in an investment center is significantly low compared to a profit center where divisional managers in an investment center have more divisional autonomy than managers in a profit center.