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Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Sample Questions (Q18-Q23):

NEW QUESTION # 18
What is the function of Cost Rollup in Oracle Fusion Cloud SCM?

A. It ensures material costs remain unchanged over time.
B. It calculates the total cost of a product by aggregating material, labor, and overhead expenses.
C. It tracks only direct labor expenses, excluding materials.

Answer: B

Explanation:
Cost Rollup in Oracle Fusion Cloud SCM aggregates all cost components-material, labor, and overhead-to calculate the total cost of a product. This process rolls up costs from raw materials through production stages, providing a comprehensive view for pricing and profitability analysis. For example, producing a widget might involve $5 in materials, $3 in labor, and $2 in overhead; Cost Rollup totals this to $10 per unit. Option B is incorrect because it excludes materials and overhead, which are integral to the process. Option C is false-Cost Rollup reflects current costs, not fixed values, adapting to fluctuations like material price changes. This function supports accurate financial reporting, cost control, and strategic decision-making by revealing true production costs.

NEW QUESTION # 19
What is a key feature of the Supplier Portal in Oracle Fusion Cloud Procurement?

A. It restricts suppliers from modifying their account details.
B. It allows suppliers to manage purchase orders, invoices, and collaboration in real time.
C. It only provides access to purchase orders but not invoices.

Answer: B

Explanation:
The Supplier Portal in Oracle Fusion Cloud Procurement is a collaborative platform that allows suppliers to manage purchase orders (POs), invoices, and real-time interactions with buyers. Suppliers can view POs, submit invoices, update shipment details, and respond to queries, enhancing transparency and efficiency. Option A is incorrect because the portal includes both POs and invoices, not just one. Option C is false-suppliers can update account details like contact or banking information, subject to approval workflows. For example, a supplier receiving a PO for 200 units can confirm delivery dates and submit an invoice directly through the portal, reducing email exchanges and delays. This feature streamlines procurement, improves supplier relationships, and ensures data accuracy across the supply chain.

NEW QUESTION # 20
What is a primary function of Cost Accounting in Oracle Fusion Cloud SCM?

A. It tracks and analyzes manufacturing costs to support financial reporting and decision-making.
B. It prevents any fluctuations in material costs.
C. It records only customer payments, excluding supplier invoices.

Answer: A

Explanation:
Cost Accounting in Oracle Fusion Cloud SCM is designed to track and analyze costs associated with manufacturing processes, including material, labor, and overhead expenses. This function supports financial reporting by providing detailed cost data and aids decision-making by offering insights into cost drivers and profitability. Option A is incorrect because cost accounting does not prevent fluctuations-it records and manages them. Option B is wrong as it encompasses supplier-related costs, not just customer payments. By maintaining accurate cost records, this module ensures compliance with accounting standards and enables strategic cost management.

NEW QUESTION # 21
Which key metric measures the effectiveness of the Demand to Management OMBP?

A. Forecast Accuracy.
B. Customer Acquisition Cost.
C. Employee Turnover Rate.
D. Order Fill Rate.

Answer: A

Explanation:
The Demand to Management Oracle Manufacturing Business Process (OMBP) in Oracle Fusion Cloud SCM focuses on translating demand signals into actionable supply plans, making Forecast Accuracy the key metric for measuring its effectiveness. Forecast Accuracy compares predicted demand to actual demand, revealing how well the system anticipates customer needs. For instance, if a forecast predicts 1,000 units sold but actual sales are 900, the accuracy is 90%, highlighting areas for improvement. Option A (Employee Turnover Rate) is an HR metric unrelated to demand management. Option C (Customer Acquisition Cost) pertains to marketing, not supply chain processes. Option D (Order Fill Rate) measures fulfillment efficiency, which is a downstream outcome, not a direct indicator of demand forecasting effectiveness. High forecast accuracy ensures inventory aligns with demand, reducing overstock or shortages, and supports strategic decision-making across procurement and production.

NEW QUESTION # 22
What is the function of Receipt Accounting in Oracle Fusion Cloud SCM?

A. It ensures supplier invoices are paid on time.
B. It validates contract terms for procurement.
C. It records the receipt of goods and services, creating accounting entries for financial reporting.

Answer: C

Explanation:
Receipt Accounting in Oracle Fusion Cloud SCM records the receipt of goods and services, generating accounting entries for financial reporting and cost tracking. Option A (timely payments) is a downstream process, not its core function. Option C (contract validation) pertains to procurement, not receipt accounting. This ensures accurate financial records and compliance.

NEW QUESTION # 23
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Sean Shaw Sean Shaw

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