Answer / nayamath

Assessment can be done for primary & secondary cost

Distribution can be made only for Primary cost

Answer / kasula kiran

Distribution: Certain individual cost are collected at a
default cost center for ease of entry, Thereafter at the
end of the period, it will be allocated to the actual cost
center using original cost element.

Assessment:The total expenses of service cost centeres are
allocated on a reasonable basis. For example, all expenses
of canteen cost center are allocated to all departments
bases on the number of employees. The secondary cost
element used for allocation.

Answer / ahmed

Distribution:

- Reposting of primary costs

- Sender cost centers are credited with a primary cost element

- Receiver cost centers are debited with a primary cost element

- Information on senders and receivers contained in the document

- List of origins not maintained in the CO document

Assessment:

Reposting of primary and secondary costs

- Sender cost centers are credited with a special secondary cost
element (assessment cost element)

- Receiver cost centers are debited with the same assessment cost
element

- Information on senders and receivers is contained in the document

- List of origins is not maintained in the cost accounting document.
The original cost element is lost during the allocation procedure.

Answer / mahali

Assessment Cycle
-> Cost Elements: Used to distribute both Primary and Secondary cost.
→ The distribution will be done with Assessment Cost Element.
→ After Distribution the Sender and Receiver Cost centers will lose the Identify of Source are Primary Cost Elements.

Distribution Cycle
-> Cost Elements: Used to distribute only Primary cost.
→ Distribution based on Primary cost elements.
→ Cost will be Tracked with Primary Cost Elements.

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