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Oracle Cost Management Cloud 2023 Implementation Essentials Sample Questions:

1. Your client only wants to cost inventory items and third party costs. Which two modules are they required to implement to ensure this functionality?

A) Inventory Management
B) Product Model
C) Cost Accounting
D) Landed Cost Management
E) Receipt Accounting

2. Identify the four types of cost adjustments.

A) A standard cost update will create an inventory value adjustment.
B) A change to a requisition after the purchase order has been created will create a cost adjustment.
C) Authorized users can manually create cost adjustments.
D) When a supplier invoice is processed in accounts payable, it can cause an adjustment to the inventory value and the cost of goods sold if the amounts processed for payment are different from the estimated amount on the purchaseorder.
E) A revenue recognition event, which in turn triggers a cost of goods sold recognition event, can cause a cost adjustment.
F) A retroactive purchase order price adjustment can cause an adjustment to the inventory value and the cost of goods sold.

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

4. Your client wants their expense items to be accrued at receipt. Which two configurations support this requirement?

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

5. Which statement is true regarding the cost cutoff date in Cost Accounting?

A) Transactions with a transaction date after the cost cutoff date will not be processed. These transactions will never be processed in any subsequent cost processor run.
B) Transactions with a transaction date after the cost cutoff date will not be processed until the cost cutoff date is changed to a date that is later than the transaction date.
C) Transactions with a transaction date before the cost cutoff date will not be processed until the cost cutoff date is changed to a date that is before the transaction date.
D) It only affects whether or not you can process a cost adjustment.

Solutions: