what is difference between distribution & assesment ?
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Answer / nayamath
Assessment can be done for primary & secondary cost
Distribution can be made only for Primary cost
Is This Answer Correct ? | 35 Yes | 1 No |
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.
Is This Answer Correct ? | 15 Yes | 0 No |
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.
Is This Answer Correct ? | 4 Yes | 1 No |
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.
Is This Answer Correct ? | 0 Yes | 0 No |
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