What is secondary costs in SAP CO - Controlling?

SAP Term: secondary costs

• Component: CO

• Component Name: Controlling

• Description: The cost elements that represent the activity values produced during internal cost allocations.

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• Key Concepts: 
  Secondary costs are costs that are not directly related to the production of a product or service, but are still necessary for the production process. In SAP Controlling (CO), secondary costs are recorded in cost centers and cost objects. They include overhead costs such as rent, utilities, and administrative expenses. 
  
  How to use it: 
  In SAP Controlling, secondary costs can be tracked and monitored using cost centers and cost objects. Cost centers are used to track the costs associated with a particular area or department, while cost objects are used to track the costs associated with a specific product or service. Secondary costs can be allocated to cost centers and cost objects using various methods such as direct allocation, step-down allocation, and activity-based costing. 
  
  Tips & Tricks: 
  When tracking secondary costs in SAP Controlling, it is important to ensure that all costs are accurately allocated to the correct cost center or cost object. This will help ensure that all costs are properly accounted for and that the financial statements accurately reflect the true cost of production. 
  
  Related Information: 
  For more information on secondary costs in SAP Controlling, please refer to the SAP Help Portal or contact your local SAP consultant.