Answer / latha

Secondary cost element capture operation costs, overheads

Answer / waqas

It is used for co. cost allocation purpose. I just wanna
add one thing in the answer above, that is cost center
provides internal activity to other cost center, and that
internal activity is distributed by a secondary cost
element.

Answer / aruna

when any posting between the CO Object requires the
secondary cost element to transfer the cost.

It helps in transferring Cost between the Cost Centers,
Internal order to Cost center, etc.

Answer / rkprasad

It's a transfering element which is used to allocate cost
from one cost object to another.

example: if u have 10000/- in your right pocket and u taken
5000/- and kept in left pocket if you use hand to transfer
from right to left that is called secodary cost element.

Answer / reshmi

Secondary elements r those which r not primary cost element directly related to gl a/c.]
For internal cost allocation purpose we use the secondary cost element the cost to allocate for to one cost center to another cost center.
like telephone is used by all the deptts in an office but to share the communication and telephone cost to all deptt (i.e admn,selling,finance) we need to allocate the cost on some basis...so this is the secondary cost element by which we allocate and settle the actual cost.

Answer / chandan

Secondary cost element create for internal purpose of
controlling area. This is for service provide to one cost
center to others cost centers.

Expamle:-
In your office you make the CANTEEN is cost center. Canteen
is provides the service to other cost centers like TEA,
Coffee, etc. You allocated the TEA, Coffee Amount to others
cost center that thru secondary cost element.

If I am wrong so please correct me.

Thanking

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