Oracle Cost Management Cloud 2021 Implementation Essentials

QUESTION NO: 1
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 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. B. It is only used when you do not need to maintain an arm's length relationship. C. It can help you with consolidated financial reporting. D. It can help you understand true margins and value added by internal business units through the internal supply chain. 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 different business units.

Correct Answer: A,C,E

QUESTION NO: 2
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 Expense, Credit Receiving Inspection C. Debit Charge Account (expense or inventory), Credit Receiving Inspection D. Debit Receiving Inspection, Credit Accrued Liability E. Debit Expense, Credit Expense Accrual

Correct Answer: C

QUESTION NO: 3
Your client uses actual costing and needs to cost to the subinventory level. They have a few subinventories that hold normal goods and one subinventory that holds returned goods. They want their normal goods subinventories to be costed differently from their returned goods subinventory.
Which cost policy supports this requirement?

A. Create a separate cost organization for the normal goods subinventories and one cost organization for the returned goods subinventory. B. Create a separate cost book for the normal goods subinventories and one cost book for the returned goods subinventory Add both cost books to the same cost organization. C. Manually create one valuation unit for the normal goods subinventories and one valuation unit for the returned goods subinventory. D. Manually create one cost profile for the normal goods subinventories and one cost profile for the returned goods subinventory. E. EnaWe the inventory organization that holds the subinventories to be costed to the subinventory level by changing the organization parameter field from "Costing Level" to "Subinventory."

Correct Answer: E

QUESTION NO: 4
A manager has decided to close the period by not allowing any new transactions, except for corrections and adjustments, which can happen any time before the period is closed permanently.
Which cost period status will allow the system to perform the transaction?

A. Closed B. Permanently Closed C. Never Opened D. Open E. Close Pending

Correct Answer: A

QUESTION NO: 5
Your client wants to view Landed Cost Variance. Which pair of search options are available to view Landed Cost Variance?

A. Inventory Organization and Cost Organization B. Inventory Organization and Legal Entity C. Business Unit and Inventory Organization D. Business Unit and Cost Organization E. Legal Entity and Cost Organization F. Business Unit and Legal Entity

Correct Answer: C

QUESTION NO: 6
Which two statements are true about Cost Accounting books? (Choose two.)

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

Correct Answer: B,C

QUESTION NO: 7
Your client has accounting rules that need specific customization. Which two options allow them to accomplish this"1

A. Use a different journal entry rule set for each ledger with a different accounting convention. B. The subledger journal entry rule set does not need the same accounting event type as the accounting method. C. Journal entry rule sets do not require accounting rules. D. The subledger journal entry rule set does not need the same accounting event class as the accounting method. E. Copy and rename predefined subledger journal entry rule sets before modifying them.

Correct Answer: D

QUESTION NO: 8
A chart of accounts (COA) must be specified on the accounting method for which two situations?

A. When using ledgers that have unique accounting requirements B. Every accounting method should have a COA. C. When account combination rules use constants D. When using segment rules E. When using account combination rules

Correct Answer: B,D

Oracle Cost Management Cloud 2021 Implementation Essentials - 1Z0-1074-21 Exam Questions