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Oracle Cost Management Cloud 2023 Implementation Essentials Sample Questions:

1. If the accounting method does not have an assigned chart of accounts (COA), which option is valid?

A) The accounting method can be assigned to any ledger.
B) The accounting method must have a mapping set to convert the accounts.
C) Any secondary ledger that uses the method cannot have a COA.
D) The accounting method may only be used by ledgers without a COA.
E) Accounting rules cannot override the accounting method.

2. You are explaining the characteristics of a "profit in inventory" cost element to a client. Which three statements describe true characteristics of this cost element?

A) It can help you understand true margins and value added by internal business units through the internal supply chain.
B) It is a special type of cost element that helps you keep track of internal markups when inventory is transferred between inventory organizations that are in different business units.
C) It can help you with consolidated financial reporting.
D) It is a special type of cost element that helps you keep track of internal markups when inventory is transferred between inventory organizations that are in the same business unit.
E) It is only used when you do not need to maintain an arm's length relationship.

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

4. Your client wants their expense items to be accrued at receipt. Which two configurations support this requirement?

A) Product Information Management > Search and select item > Specifications > Manufacturing > Verify that Inventory Asset Value is set to "No".
B) Product Information Management > Search and select the expense item > Specifications > Manufacturing > Verify that Inventory Asset Value is set to "Yes".
C) Configure Procurement Business Function > Select the business unit > Set Select Receipt Close Point to Accrue at Period End.
D) Configure Procurement Business Function > Select the business unit > Set Select Receipt Close Point to Accrue at At Receipt.
E) Manage Common Options for Payables and Procurement > Select the business unit > Expense Accruals
> Set Accrue Expense Items to At Receipt.
F) Manage Common Options for Payables and Procurement > Select the business unit > Expense Accruals
> Set Accrue Expense Items to Period End.

5. Which two types of costs are included in the cost of contract manufactured items?

A) The cost of Items that the contract manufacturer had to purchase to perform the contract manufacturing service, and the cost of resources used by the contract manufacturer
B) The cost of items that the original equipment manufacturer (OEM) owns and has provided to the contract manufacturer for use in the process of making the output Items
C) Manufacturer will charge to make the outputs and would normally be enough to cover their costs and include a fair profit.
D) The cost of resources consumed at the OEM's factory
E) The cost of the contract manufacturing service Item. This is the price that the contract

Solutions: