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Oracle Cost Management Cloud 2023 Implementation Essentials Sample Questions:

1. Select two ways to define the standard cost for an item from the Cost Accounting work area.

A) Manage the Item Cost task.
B) Create Standard Cost in a spreadsheet.
C) Import standard costs from receipt layers.
D) Manage the Standard Cost task.

2. When running the Transfer Costs to Cost Management process, where will the primary default source for costs come from and what is the effect?

A) Purchase order costs; item catalog costs can be used.
B) Payables invoices; invoice price variance can be added to item cost.
C) Receipt costs; costs include adjustments.
D) Receivables invoices; actual cost can be used.
E) Requisition costs; validated costs can be used.

3. Which two statements are true about Cost Accounting books? (Choose two.)

A) Every cost organization must use different book names; they cannot be shared.
B) A cost organization can use secondary books to perform Cost Accounting for different purposes such as currencies, regulatory reporting, or management reporting.
C) A cost organization has one book that posts to the primary ledger.
D) Secondary books can post accounting entries into any ledger, including the primary ledger or any secondary ledger.

4. Your client wants to set up some of their items as expense items and then enable them to be accrued at period end for one of their business units.
Which two configurations will support this request?

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

5. You have configured your expense items to accrue at receipt. You have created a few purchase orders and want to verify that the supplier invoices have been created.
Which accounting entries signal this process has taken place?

A) Debit Accrued Liability, Credit Accounts Payable
B) Debit Charge Account (expense or inventory), Credit Receiving Inspection
C) Debit Expense, Credit Expense Accrual
D) Debit Expense, Credit Receiving Inspection
E) Debit Receiving Inspection, Credit Accrued Liability

Solutions: