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Oracle Cost Management Cloud 2023 Implementation Essentials Sample Questions:

1. What are three cost method choices that are available in Cost Accounting?

A) Perpetual average cost
B) Standard cost
C) Actual cost (FIFO or First In First Out)
D) Actual cost (LIFO or Last In First Out)
E) Periodic average cost
F) Period end average cost

2. Identify two characteristics of an expense pool. (Choose two.)

A) It is a user-defined entity that represents a grouping of expenses that you want to absorb with resource and overhead rates.
B) You can define the name of your expense pool, but you cannot define more than one.
C) It helps you analyze under-absorption and over-absorption of expenses that you want to capitalize onto the balance sheet as inventory value.
D) It is used only for analyzing gross margins on noninventory sales of services.

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

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

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

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

5. After all relevant transactions are in Receipt Accounting, which two tasks must be completed for these transactions to be transferred to the General Ledger?

A) Transfer transactions from receiving.
B) Assign accruals to purchase order transactions.
C) Transfer to Sub ledger Accounting.
D) Create distributions.
E) Transfer transactions from payables.

Solutions:

Question # 1 Answer: A,C,D

Question # 2 Answer: A,C

Question # 3 Answer: B,D,E,F

Question # 4 Answer: A,C

Question # 5 Answer: D