Question no 3978 : the use of Allocation Structure in Cost Object Controlling

In SAP Controlling, the Allocation Structure is used in which of the following process ?

(only one answer)

A. Settlement.
B. Overhead cost calculation.
C. Joint Production costing.
D. Variance calculation.
E. ABC costing.
.

Answer: A

During settlement, costs incurred under the primary and secondary cost elements by a sender are allocated to one or more receivers. When you settle by cost element, you settle using the appropriate original cost element that debit the order or another cost element can be sued; this depends on the allocation structure. Therefore, at the settlement process; the settlement cost element in the allocation structure will be used for the settlement process. 
An allocation structure comprises one or several settlement assignments. An assignment shows which costs (origin: cost element groups from debit cost elements) are to be settled to which receiver type (for example, cost center, order, and so on).

Allocation Structure can be found in the Settlement Profile.