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Oracle Cost Management Cloud 2023 Implementation Essentials Sample Questions:

1. You have just finished modifying an accounting method. What is the final step to complete the accounting method configuration?

A) Transfer costs to Cost Management.
B) Create Accounting.
C) Transfer transactions from Receiving to Costing.
D) Activate its journal entry rule set assignments.
E) Execute the Preprocessor.

2. Identify two ways that standard cost is calculated.

A) The standard cost of the configured item is based on the purchase order price quoted by the supplier for the configured item.
B) The standard cost is the sum of the cost of the selected option items.
C) Users must manually enter the cost of each configured item; the calculation is not automated.
D) The cost of a configured item is calculated based on the work definition of the model item.
E) The roll-up calculation can be performed to update standard costs for Cost Accounting purposes

3. 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 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 can help you with consolidated financial reporting.
E) It is only used when you do not need to maintain an arm's length relationship.

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) Never Opened
B) Close Pending
C) Permanently Closed
D) Open
E) Closed

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

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

Solutions: