Oracle Cost Management Cloud 2017 Implementation Essentials (1z0-987) Free Practice Test

Question 1

Which two steps need to be completed to estimate landed costs?

A. Prepare the Material Purchase Order Data process.

B. Update standard costs.

C. Allocate charges

D. Transfer transactions from the Inventory to the Costing process.

E. Transfer transactions from the Payables to the Costing process.

Correct Answer: A,E

Question 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 Expense, Credit Receiving Inspection

B. Debit Expense, Credit Expense Accrual

C. Debit Accrued Liability, Credit Accounts Payable

D. Debit Receiving Inspection, Credit Accrued Liability

E. Debit Charge Account (expense or inventory), Credit Receiving Inspection

Correct Answer: E

Question 3

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

A. Import standard costs from receipt layers.

B. Manage the Standard Cost task.

C. Manage the Item Cost task.

D. Create Standard Cost in a spreadsheet.

Correct Answer: C,D

Question 4

Select the two valid relationships between subledger components.

A. Journal entry rule sets hold journal rules and accounting rules.

B. The accounting method groups journal entry rule sets by Event Class and Event Type.

C. The accounting method holds the accounting rules by Event Class and Event Type.

D. Journal entry rules are used to hold accounting rules.

E. The journal lines hold the journal entry rule sets.

Correct Answer: A,D

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Question 5

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. Payables invoices; invoice price variance can be added to item cost.

B. Purchase order costs; item catalog costs can be used.

C. Requisition costs; validated costs can be used.

D. Receipt costs; costs include adjustments.

E. Receivables invoices; actual cost can be used.

Correct Answer: E

Question 6

Identify four processors available in the cost processor.

A. Cost Accounting Processor

B. Cost of Goods Sold Processor

C. Costing Period Processor

D. Cost Reports Processor

E. Receipt Processor

F. Cost Distribution Processor

Correct Answer: A,B,D,F

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Question 7

You can track costs at what granularity level in Cost Accounting for the actual costing method?

A. Subinventory. Lot, Serial, Grade

B. Subinventory, Lot, Serial, Locator

C. Subinventory, Make, Lot, Serial

D. Grade, Serial, Group, Lot

E. Grade, Subinventory, Locator, Serial

Correct Answer: A

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Oracle Cost Management Cloud 2017 Implementation Essentials (1z0-987) Free Practice Test