Activity Type Master Data

In Activity Type master data we found these options allocation cost element feild.
1     Manual entry, manual allocation
2     Indirect determination, indirect allocation
3     Manual entry, indirect allocation
4     Manual entry, no allocation
What is its relevance? . When to select what?.
Please give example.

Hi,
We are using an activity type for Direct labour. eg of how we have defined the Master Data is below:
ATyp category - 1
1 is selected if Activity types use plan activity quantities. If you are going to plan the quantities for Activity type thru KP26 and then the Activity cost thru KP06 before calculating the Activity price thru KSPI, select 1.
Price indicator - 1
Act. price indicator - 5
Regards,

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