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Oracle Cost Management Cloud 2023 Implementation Essentials Sample Questions:

1. You have an item with two work definitions. One work definition is production priority 1 and named Plan A.
Another work definition is production priority 2 and named Plan B.
In your cost planning scenario, you have specified the work definition selection criteria as name and then production priority, and you have defined the name as Plan B.
How will the application select the work definition?

A) While you can have more than one work definition for the same item, the cost scenario has no way to unambiguously select one of them.
B) The scenario will choose the work definition that is production priority 1.
C) The application will generate an error because there are two work definitions for the same item.
D) The application will use the work definition that is named Plan B.
E) The cost planning scenario will use both work definitions for the item.

2. There are freight charges on an invoice. Which two setups are required to get create accounting to enter a separate accounting line for it?

A) Create a condition for a journal line for freight.
B) Line Type must be set to Freight.
C) Account Class must be set to Freight.
D) Sub ledger accounting is set up to accomplish this out-of-the-box.

3. Identify the four types of cost adjustments.

A) A change to a requisition after the purchase order has been created will create a cost adjustment.
B) When a supplier invoice is processed in accounts payable, it can cause an adjustment to the inventory value and the cost of goods sold if the amounts processed for payment are different from the estimated amount on the purchaseorder.
C) A retroactive purchase order price adjustment can cause an adjustment to the inventory value and the cost of goods sold.
D) Authorized users can manually create cost adjustments.
E) A revenue recognition event, which in turn triggers a cost of goods sold recognition event, can cause a cost adjustment.
F) A standard cost update will create an inventory value adjustment.

4. Which four statements describe what is unique about Cost Accounting for items received into inventory as consigned?

A) Consigned items cannot appear on inventory reports with information about the eventual value of the consigned item.
B) Consigned items can appear on inventory reports with information about the eventual value of the consigned item
C) A consumption can automatically trigger a momentary ownership transaction before the consumption transaction.
D) There is no difference between owned inventory and consigned inventory.
E) The liability for a consigned item occurs when there is an ownership event.
F) The quantity is tracked in inventory but not as an asset until there is an ownership event

5. An invoice is created in a foreign currency. The invoice is not paid until several weeks later. By then, the currency conversion rate has changed.
How do you get the journal line rule to calculate the gain or loss?

A) Turn on the Subledger Gain or Loss Option.
B) Create a foreign reporting currency to track gain/loss.
C) Create a secondary ledger to track gain/loss.
D) Subledger Accounting is already set up to process it.

Solutions: