This paper discusses five common divisional performance measurement methods-cost centers, revenue centers, profit centers, investment centers, and expense centers-and provides the beginnings of a theory that attempts to explain when each of these five methods is likely to be the most efficient....

This classic by the formulators of agency cost theory discusses five common divisional performance measurement methods-cost centers, revenue centers, profit centers, investment centers, and expense centers-while providing a theory that attempts to explain when each of these methods is likely to...