What is Cost, Profit, Investment center and why ? Solution Cost Center is a place where cost are being identified or segregated.it could be a division, department etc. It is the place or division which is only responsible for cost and not for profit. Profit Center is a place where both cost & revenue are being identified & segregated, Similarly it could be a division, department etc. It is the place or division which is responsible for cost as well as for revenue. They are helpful in pricing the product. Investment Center is a place where cost ,revenue & capital investment are being identified & segregated. It could be a subsidiary company or division. In this Responsibilty is on financial aspect. Investment center are having responible on cost, revenue & investment i.e the person should have to be responsible in each aspect i.e pricing , capital budgeting, financing etc .