Sekundaerkosten

Sekundärkosten: Definition, Formula, Example, and FAQs

What Is Sekundärkosten?

Sekundärkosten, often translated as "secondary costs" or "indirect costs," represent expenses in a business that arise from the consumption of services provided by internal support departments, rather than directly from the production of goods or services. These costs are a crucial component of Kostenrechnung, a field within Betriebswirtschaftslehre that focuses on systematically recording, allocating, and evaluating a company's costs. Unlike Einzelkosten, which can be directly attributed to a specific product or service, Sekundärkosten are initially incurred in support areas—such as internal workshops, IT departments, or facility management—and then allocated to the primary Kostenstellen (cost centers) that directly contribute to value creation. Understanding and accurately allocating Sekundärkosten is vital for precise product Kalkulation and effective cost control.

History and Origin

The concept of Sekundärkosten and their systematic treatment emerged with the development of modern industrial enterprises and the increasing complexity of their organizational structures. As businesses grew, specialized support departments became necessary, generating costs that were not directly tied to production units. The need to accurately reflect these indirect expenses in product costing and profitability analysis led to the evolution of sophisticated cost accounting methods. Early forms of cost accounting, originating in the late 19th and early 20th centuries, initially focused on direct costs. However, with the rise of overheads and complex internal service structures, the challenge of allocating Gemeinkosten became paramount. The "Kostenstellenrechnung" (cost center accounting) system, a cornerstone of German cost accounting, was developed to address this, providing a framework for distributing these indirect costs. The Gabler Wirtschaftslexikon highlights cost accounting as a central sub-area of internal accounting, where costs are recorded, stored, assigned to various reference values (e.g., products), and evaluated for specific purposes.

Key T⁵akeaways

• Sekundärkosten are indirect costs generated by a company's internal support departments.
• They are allocated to primary cost centers that are directly involved in production or service delivery.
• Accurate allocation of Sekundärkosten is essential for precise product costing and informed decision-making.
• These costs require systematic Umlageverfahren (allocation methods) to distribute them appropriately.
• Effective management of Sekundärkosten contributes to overall business Wirtschaftlichkeit and profitability.

Formula and Calculation

Sekundärkosten do not have a single, universal "formula" in the sense of a mathematical equation that always applies. Instead, their calculation involves the process of cost allocation, where costs incurred by auxiliary cost centers (support departments) are distributed to main cost centers (production or sales departments). Various methods are used for this allocation, including:

• Direct Method (Direktes Verfahren): Allocates costs directly from auxiliary cost centers to main cost centers, ignoring services exchanged between auxiliary centers.
• Step-Down Method (Treppenverfahren): Allocates costs sequentially, starting with the auxiliary cost center that provides the most services to other auxiliary centers. Once a center's costs are allocated, it does not receive costs from others.
• Reciprocal Method (Gleichungsverfahren or Iteratives Verfahren): The most accurate method, which accounts for all interdependencies and reciprocal services between auxiliary cost centers using a system of linear equations.

For the reciprocal method, a simplified representation for two auxiliary cost centers (A1 and A2) providing services to each other and to main cost centers (M1, M2...) could involve:

Let (K_{A1}) be the total Sekundärkosten of auxiliary cost center A1, and (K_{A2}) be the total Sekundärkosten of auxiliary cost center A2.
Let (s_{12}) be the percentage of A1's services used by A2, and (s_{21}) be the percentage of A2's services used by A1.
Let (k_{A1}^{{prim}) and (k_{A2}}{prim}) be the Primärkosten (primary costs directly assigned) of A1 and A2 respectively.

The equations to determine the final costs of each auxiliary cost center after inter-departmental allocation are:

These equations are solved simultaneously to find the total costs (K_{A1}) and (K_{A2}), which then form the basis for allocation to the main cost centers and, ultimately, to Kostenträger (cost objects/products).

Interpreting the Sekundärkosten

Interpreting Sekundärkosten primarily involves understanding their impact on the overall cost structure and the profitability of products or services. Once these costs are allocated to the primary cost centers, they become part of the full cost of production. A high proportion of Sekundärkosten relative to total costs might indicate a significant reliance on internal services or potentially inefficient support processes. Analyzing the specific drivers of Sekundärkosten within each support department—for example, the energy consumption in facility management or the number of IT support tickets—allows management to identify areas for cost optimization. This analysis is a key part of Controlling and informs strategic decisions about outsourcing, process improvements, or technology investments. Accurate allocation also ensures that pricing decisions are based on a true reflection of all associated costs, preventing underpricing or overpricing.

Hypothetical Example

Consider "TechFab GmbH," a company manufacturing custom electronic components. TechFab has a production department (main cost center) and two support departments: an internal IT support department and a maintenance workshop.

Month 1 Costs:

• IT Support Department:
  • Salaries (Primärkosten): €10,000
  • Software Licenses (Primärkosten): €2,000
  • Total IT Primärkosten: €12,000
• Maintenance Workshop:
  • Salaries (Primärkosten): €8,000
  • Spare Parts (Primärkosten): €1,000
  • Total Maintenance Primärkosten: €9,000
• Production Department: (Receives services from IT and Maintenance)

Service Consumption (Allocation Keys):

• IT Services:
  • Production uses 70%
  • Maintenance Workshop uses 30%
• Maintenance Services:
  • Production uses 90%
  • IT Support uses 10%

Allocation using the Reciprocal Method:

Let (S_{IT}) be the total cost of IT after receiving services, and (S_{Maint}) be the total cost of Maintenance after receiving services.

Substitute (S_{Maint}) into the first equation:
(S_{IT} = 12,000 + 0.10 \cdot (9,000 + 0.30 \cdot S_{IT}))
(S_{IT} = 12,000 + 900 + 0.03 \cdot S_{IT})
(S_{IT} = 12,900 + 0.03 \cdot S_{IT})
(0.97 \cdot S_{IT} = 12,900)
(S_{IT} = 12,900 / 0.97 \approx 13,298.97)

Now find (S_{Maint}):
(S_{Maint} = 9,000 + 0.30 \cdot 13,298.97)
(S_{Maint} = 9,000 + 3,989.69 \approx 12,989.69)

Final Allocation of Sekundärkosten to Production:

• From IT to Production: (0.70 \cdot 13,298.97 \approx €9,309.28)
• From Maintenance to Production: (0.90 \cdot 12,989.69 \approx €11,690.72)

The total Sekundärkosten allocated to the Production Department for this month are approximately (€9,309.28 + €11,690.72 = €21,000). These costs will then be factored into the Kostenarten of the products manufactured, ensuring a comprehensive cost calculation.

Practical Applications

Sekundärkosten analysis and allocation are fundamental across various aspects of business operations and financial management. In Prozesskostenrechnung, for instance, they help to determine the cost of individual business processes, not just products. This information is critical for process optimization and efficiency improvements. In the manufacturing sector, accurate Sekundärkosten allocation is vital for determining the true cost of goods sold, which directly impacts pricing strategies and profit margins.

Furthermore, management teams leverage insights from Sekundärkosten to inform Budgetierung and strategic planning. By understanding which internal services consume the most resources, companies can make informed decisions about resource allocation, departmental efficiency, and potential outsourcing. McKinsey & Company emphasizes that rethinking common practices in cost management, particularly achieving a more fine-grained perspective on where costs occur, should be a centerpiece of any successful cost-management program. This also ties into effective Management Reporting, where detailed cost information supports decision-making. For example, a company might discover that its in-house le³gal department (a support function) generates significant Sekundärkosten. Through analysis, they could identify opportunities to streamline processes or negotiate better rates with external legal counsel, if this yields a net benefit.

Limitations and Criticisms

While essential for comprehensive cost accounting, the treatment of Sekundärkosten is not without limitations or criticisms. One primary challenge lies in the arbitrary nature of allocation keys. Choosing the "right" key (e.g., number of employees, square footage, machine hours) for distributing costs can be subjective and may not always accurately reflect the true consumption of services, leading to distorted product costs. This can result in misinformed pricing or investment decisions. For example, if IT costs are allocated based purely on employee count, a department with low IT usage but many employees might be unfairly burdened.

Another criticism is the complexity and effort involved, especially with methods like the reciprocal method, which can be computationally intensive for large organizations with many interconnected support departments. This complexity can sometimes outweigh the benefits of increased accuracy, particularly for smaller firms. Some experts argue that an overemphasis on precise cost allocation can obscure the larger picture of overall efficiency and value creation. The Journal of Accountancy, while highlighting the importance of cost accounting, also implicitly acknowledges the challenges in collecting and analyzing accurate data and choosing the right methods for cost allocation. Traditional cost accounting, including the allocation of Sek²undärkosten, has been criticized for being "precisely wrong rather than approximately right" if the underlying assumptions about cost behavior and allocation bases are flawed. Despite these critiques, the systematic handling of Sekundärk¹osten remains a fundamental aspect of robust financial management and Deckungsbeitragsrechnung.

Sekundärkosten vs. Primärkosten

The distinction between Sekundärkosten and Primärkosten is fundamental in cost accounting and often causes confusion for those new to the field.

While Primärkosten are the initial expenses recorded, Sekundärkosten are the result of internal cost flows between departments. For example, the salary of a factory worker (Primärkosten) is directly assigned to the production cost center. However, the cost of the electricity consumed by the IT department, which supports the entire factory, is initially a Primärkosten for IT. When the IT department's total costs are then allocated to the production department, that portion becomes a Sekundärkosten for production. The systematic differentiation and allocation of these two types of costs are crucial for achieving accurate product costing and effective cost control.

FAQs

What is the main purpose of allocating Sekundärkosten?

The main purpose is to attribute all indirect costs associated with internal service provision to the departments or products that actually benefit from these services. This ensures a comprehensive and accurate understanding of the full cost of producing goods or delivering services, which is vital for pricing, profitability analysis, and strategic decision-making.

How do Sekundärkosten relate to overheads?

Sekundärkosten are a specific type of Gemeinkosten (overheads). Overheads are costs that cannot be directly attributed to a single product or service. Sekundärkosten are those overheads that arise within support departments and need to be allocated to other cost centers, often including primary production or sales cost centers.

Can Sekundärkosten be reduced?

Yes, Sekundärkosten can often be reduced through various measures. This might involve optimizing the efficiency of internal support departments, scrutinizing the necessity and scale of internal services, improving internal processes (e.g., through automation), or even outsourcing certain support functions if external providers can offer the service more cost-effectively. Effective Kostenrechnung provides the necessary insights to identify such opportunities.

Is Activity-Based Costing (ABC) relevant for Sekundärkosten?

Yes, Prozesskostenrechnung (Activity-Based Costing, ABC) is highly relevant for Sekundärkosten. ABC focuses on identifying the activities that drive costs within support departments and then allocating these costs based on the actual consumption of those activities. This can lead to a more accurate allocation of Sekundärkosten compared to traditional methods that might use simpler, potentially less precise, allocation keys.

Why is accurate allocation of Sekundärkosten important for product pricing?

Accurate allocation of Sekundärkosten is crucial for product pricing because it ensures that the calculated cost of a product reflects all resources consumed, both direct and indirect. If Sekundärkosten are inaccurately allocated, products might be underpriced (leading to lower profits or losses) or overpriced (making them uncompetitive), impacting the company's market position and overall financial health.