Answer Posted / 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.

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