Which type of costs is recorded in secondary cost elements?

In the context of SAP S/4HANA and cost accounting, secondary cost elements are specifically used to record allocations within the controlling module. This makes them essential for the internal cost flow management among different cost centers, profit centers, and internal orders.

Secondary cost elements allow organizations to manage and record costs that are not directly related to external expenditure but are necessary for internal accounting, such as overhead costs or services provided by one internal cost center to another. This facilitates more accurate internal reporting and helps in performance analysis.

The other options relate to different categories of costs or financial statements. Direct costs are typically associated with primary cost elements as they are expenses that can be directly traced to a product or service. Operating expenses also fall into the realm of primary costs, representing the costs required to run day-to-day operations. Investment income, on the other hand, pertains to financial operations and is not captured within the context of secondary cost elements which focus on managing internal cost allocations. Thus, secondary cost elements are correctly identified with allocations, focusing on inter-departmental cost-sharing and management.