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Key Terms
Instructions: Please define the following key terms. Show Who? What? Where? When? Why Important?
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Investment Center
An investment center is a business unit within an organization that is responsible for its own revenue, expenses, and investments, and its performance is assessed based on return on investment.
Performance Report
A document that compares actual operational or financial results to planned or budgeted results.
Cost Center
A department or unit within an organization that does not directly add to profit but still incurs costs.
Departmental Contribution To Overhead
The amount of money that each department contributes towards covering the company's indirect costs or overheads.
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