Oracle Cost Management Cloud 2020 Implementation Essentials (1z0-1074-20) Free Practice Test

Question 1

Your client wants to set up some of their items as expense items and then enable them to be accrued at period end for one of their business units.
Which two configurations will support this request?

A. Product Information Item > Search and select item > Specifications > Manufacturing > Verify that Inventory Asset Value is set to "No".

B. Configure Procurement Business Function > Select the business unit > Set Select Receipt Close Point to Accrue at At Receipt.

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 Period End.

E. Manage Common Options for Payables and Procurement > Select the business unit > Expense Accruals > Set Accrue Expense Items to At Receipt.

F. Product Information Item > Search and select the expense item > Specifications > Manufacturing > Verify that Inventory Asset Value is set to "Yes".

Correct Answer: C,E

Question 2

At what level can you define item cost profiles?

A. Item cost profiles are defined at the cost organization level. All items within a cost organization must use the same cost profile.

B. Cost profiles are ultimately defined at the item level. Different items within the same inventory organization can use different cost profiles.

C. Different items within an inventory organization can use different cost profiles, but items within an item category must all use the same cost profile because that is the level at which the default cost profile is defined.

D. Item cost profiles are defined within an inventory organization. There can be only one cost method for an inventory organization.

Correct Answer: D

Question 3

Identify two characteristics of a cost profile.

A. It is where you define which cost method you want to use for the cost component to cost element mapping.

B. It is where you define your Cost Accounting policies.

C. It is used for Receipt Accounting.

D. It is used for calculating the estimated cost of manufactured items under different scenarios.

Correct Answer: B,C

Question 4

Your client needs to import the relevant transactions and tax determinants for their expense items into Receipt Accounting. What is the correct sequence of processes to accomplish this?

A. Transfer Transactions from Inventory to Costing, Transfer Costs to Cost Management

B. Transfer Costs to Cost Management, Transfer Transactions from Receiving to Costing

C. Transfer Transactions from Receiving to Costing, Transfer Transactions from Inventory to Costing

D. Transfer Costs to Cost Management, Transfer Transactions from Inventory to Costing

E. Transfer Transactions from Receiving to Costing, Transfer Costs to Cost Management

F. Transfer Transactions from Receiving to Costing, Transfer Transactions from Inventory to Costing

Correct Answer: E

Question 5

You have made some changes to your subledger accounting setups for Costing and want to verify that the journal entries are showing up correctly.
How can you generate a report that allows you to see the subledger journal entries for transactions without actually transferring to the General Ledger?

A. Run the Create Accounting for Costing process with the following parameters: * Accounting Mode = Final * Report Style = No report* Transfer to General Ledger = No* Post in General Ledger = No

B. Run the Create Accounting for Costing process with the following parameters: * Accounting Mode = Draft * Report Style = Detail* Transfer to General Ledger = No * Post in General Ledger = No

C. Run the Transfer Transactions from Inventory to Costing process with the following parameters: * Accounting Mode = Draft * Report Style = Detail * Transfer to General Ledger = No * Post in General Ledger = No

D. Run the Create Cost Accounting Distribution process with the following parameters: * Accounting Mode = Final * Report Style = No report* Transfer to General Ledger = No* Post in General Ledger = No

E. Run the Create Cost Accounting Distribution process with the following parameters: * Accounting Mode = Draft * Report Style = Detail * Transfer to General Ledger = No * Post in General Ledger = No

Correct Answer: B

Question 6

Your customer wants to run a report to review account balances for both inventory valuation and cost of goods sold. Which two Oracle Transactional Business Intelligence reports would you run so the customer can review these balances?

A. Inventory Valuation Report

B. Revenue and COGS Matching Report

C. Inventory Account Balances Report
B COGS Account Balances Report

D. Costing Balances Report

Correct Answer: B,C

Question 7

Your client wants to turn on summary for GL posting, but they want the Subledger Accounting to contain every transaction unsummarized for detailed analysis and drill down.
How do you accomplish this?

A. Turn off merge matching lines in the journal line rule.

B. Turn on detailed posting for GL in the ledger setup.

C. Write a custom report.

D. Extract distribution accounting entries.

E. Turn off the summarize flag in the journal line rule.

Correct Answer: A

Question 8

If the accounting method does not have an assigned chart of accounts (COA), which option is valid?

A. Accounting rules cannot override the accounting method.

B. The accounting method can be assigned to any ledger.

C. The accounting method must have a mapping set to convert the accounts.

D. The accounting method may only be used by ledgers without a COA.

E. Any secondary ledger that uses the method cannot have a COA.

Correct Answer: A

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Oracle Cost Management Cloud 2020 Implementation Essentials (1z0-1074-20) Free Practice Test