Which of the following statements are true regarding direct and - ProProfs Discuss
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Which of the following statements are true regarding direct and indirect allocation methods in SAP CO? The main focus of SAP CO is to allocate costs in a company to chose company units that produce costs by consuming resources. To plan ahead and execute these cost allocations, SAP provides several allocation methods.



A. An Assessment is an indirect allocation method that is carried out for allocating primary and secondary costs from a sender cost center to receiver controlling objects. Thereby, only cost centers or business processes can serve as the sender of the costs.
B. An Assessment uses secondary cost elements category 43 to allocate costs.
C. Direct Activity allocation is a transaction based method for allocating costs between a sender and receivers directly by using activity types as tracing factor.
D. Direct and Manual Cost Allocation can be used to plan costs ahead.
E. The Direct Cost Allocation credits the sender cost center and debits the receiver controlling objects by using a secondary cost element with category 42.

This question is part of 10 Management Accounting
Asked by Dbv_rulez, Last updated: Jun 25, 2019

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1 Answer

John Smith

John Smith

Answered on Mar 30, 2017

An Assessment is an indirect allocation method that is carried out for allocating primary and secondary costs from a sender cost center to receiver controlling objects. Thereby, only cost centers or business processes can serve as sender of the costs.
Direct Activity allocation is a transaction based method for allocating costs between a sender and receivers directly by using activity types as tracing factor.
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