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Oracle Cost Management Cloud 2023 Implementation Essentials Sample Questions:

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

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

2. Identify three characteristics of cost component to cost element mapping.

A) It is user-defined.
B) You can only define one cost component to cost element mapping for an installation.
C) It lets you define how cost component level costs will map into cost elements.
D) You cannot modify, duplicate, or create user-defined cost components.
E) It is one of the attributes you define as part of your cost profile definitions.

3. Which two steps need to be completed to estimate landed costs?

A) Prepare the Material Purchase Order Data process.
B) Allocate charges
C) Update standard costs.
D) Transfer transactions from the Payables to the Costing process.
E) Transfer transactions from the Inventory to the Costing process.

4. 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 with consolidated financial reporting.
B) It can help you understand true margins and value added by internal business units through the internal supply chain.
C) 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.
D) It is only used when you do not need to maintain an arm's length relationship.
E) 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.

5. At what level can you define item cost profiles?

A) Cost profiles are ultimately defined at the item level. Different items within the same inventory organization can use different cost profiles.
B) Item cost profiles are defined at the cost organization level. All items within a cost organization must use the same cost profile.
C) Item cost profiles are defined within an inventory organization. There can be only one cost method for an inventory organization.
D) Different items within an inventory organization can use different cost profiles, but items within an item category must all use the same cost profile because that is the level at which the default cost profile is defined.

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