what is difference between primary distribution and secondry
distribution of cost in a cost centre
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Answer Posted / Radhey Shyam Sharma
In a Cost Center, primary distribution refers to the initial allocation of costs to different cost objects within the same cost center. It is typically based on predefined cost drivers such as labor hours, machine hours, or materials consumed.nnSecondary distribution, also known as consolidation or overhead distribution, involves the further allocation of costs among multiple cost centers and departments. It is often based on apportionment formulas, such as activity-based costing (ABC), that consider the actual consumption of resources across various cost centers.
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