ROI and residual income are tools used to evaluate managerial performance in investment centers.

ROI

Return on Investment; a performance measure used to evaluate the efficiency of an investment by comparing the amount of return relative to the investment's cost.

Residual Income

The income that remains after deducting all required costs of capital from the net operating income.

Investment Centers

Divisions or units within an organization that are responsible for both generating revenue and controlling costs, thus having an impact on the investment returns.