Asked by Isaac Rojas on Apr 27, 2024
Verified
What is an investment center and how is its performance evaluated?
Investment Center
A division or unit of a business that is responsible for its own revenues, expenses, and investments, and is evaluated based on its return on investment.
Performance Evaluation
The process of assessing and reviewing an employee's or organization's work performance and outcomes against predefined objectives.
- Differentiate between cost centers and profit centers, as well as their influence on the organizational framework and performance appraisal.
Verified Answer
JM
Jasmyne McGeeMay 03, 2024
Final Answer :
An investment center generates revenues and incurs costs,and its manager is also responsible for the investments made in the operating assets.Investment center managers are evaluated on their use of investment center assets to generate income.
Learning Objectives
- Differentiate between cost centers and profit centers, as well as their influence on the organizational framework and performance appraisal.
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