State ONE (1) similarity and TWO (2) differences between a Profit centre and an Investment centre.

Similarity:

  • Both centers are responsible for effective cost minimization and maximization of profit.

Differences:

  1. An Investment center has additional responsibility for capital investments, whereas a Profit center does not handle capital investments.
  2. The performance of an Investment center is measured by return on investment (ROI) or residual income (RI), while the performance of a Profit center is measured based on controllable profit.