An investment center is one of the three responsibility center defined in Responsibility Accounting.
An investment center incurs costs (or expenses), generate revenues, and invest. The major difference between an investment center and a profit center is that an investment center has the responsibility on the invested capital. The manager of an investment center is also responsible for determining the investment center’s assets, and may make decisions on the equipments and plants.
A branch office or a subsidary
The primary basis for evaluating the performance of a manager of an investment center is the return on investment (ROI).