True or False: Secondary cost elements are defined in Financial Accounting (FI) and are used to allocate costs.

Secondary cost elements are indeed defined in Financial Accounting (FI) and are a crucial part of cost accounting within SAP. They serve the purpose of allocating costs to various cost objects, facilitating internal cost tracking and analysis.

The primary role of secondary cost elements is to record and allocate costs that arise from internal activities, such as overhead, that are not directly associated with a specific cost object. This allows organizations to have a clear view of their internal cost structure and aids in budgeting, forecasting, and performance analysis.

While primary cost elements relate to external transactions recorded in FI, secondary cost elements enable a more nuanced approach to internal cost management. Therefore, the statement is true as secondary cost elements are indeed defined within the FI module, and their intended purpose is to facilitate the allocation of costs throughout the organization.