Secondary Cost Center

Description

The Secondary Cost Center is that cost center of a company, which is not directly related to an operational business purpose. For these Secondary Cost Centers, FACTON determines Personnel Costs per Employee and Non-Personnel Costs per Employee via value rules. This determination is requires the following information:

  • Industrial Sector (on the calculation level)
  • Reference Location (on the calculation level)
  • Labor Group (on the Secondary Cost Center level)

Further information, see: Build a Overhead Rate Calculation

Examples

  • Storage employee (material cost center)
  • Development engineer (research and development cost center)
  • Distribution employee (sales cost center)

Insertion positions

Secondary cost centers can be inserted under the following calculation elements:

Calculation Element Should Costing
Primary Cost Center x

Quantity Type

Secondary cost centers have the quantity type »currency«.

Properties

You can find the basic properties of the secondary cost center in the Details view.

Further information, see: Labor Rate Calculation