CO assessment

Hello Friends,

Assessment cycle : I see that a cycle receiver is a profit center. What does this mean? Shouldn't a cost center allocate only to another cost object? why is profit center used as receiver?

Which is the correct way to say it (1 or more answers):

1. primary Cost is allocated to Secondary cost which is then allocated to receiver cost center?

2. primary cost is allocated to secondary cost.

3. primary cost center is allocated to secondary cost center.

4. primary cost element is allocated to receiver cost element via secondary cost element.

5. primary cost is allocated to receiver cost center via secondary cost element.

regards

Markus