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Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Sample Questions (Q20-Q25):

NEW QUESTION # 20
What is the function of Cost Rollup in Oracle Fusion Cloud SCM?

A. It ensures material costs remain unchanged over time.
B. It tracks only direct labor expenses, excluding materials.
C. It calculates the total cost of a product by aggregating material, labor, and overhead expenses.

Answer: C

Explanation:
Cost Rollup in Oracle Fusion Cloud SCM aggregates all cost components-material, labor, and overhead-to calculate the total cost of a product. This process rolls up costs from raw materials through production stages, providing a comprehensive view for pricing and profitability analysis. For example, producing a widget might involve $5 in materials, $3 in labor, and $2 in overhead; Cost Rollup totals this to $10 per unit. Option B is incorrect because it excludes materials and overhead, which are integral to the process. Option C is false-Cost Rollup reflects current costs, not fixed values, adapting to fluctuations like material price changes. This function supports accurate financial reporting, cost control, and strategic decision-making by revealing true production costs.

NEW QUESTION # 21
Which key metric measures the effectiveness of the Demand to Management OMBP in Oracle Fusion Cloud SCM?

A. Inventory Turnover, which tracks the speed of inventory movement.
B. Forecast Accuracy, evaluates the precision of demand predictions against actual market demand.
C. Supplier Lead Time, which measures supplier response efficiency.

Answer: B

Explanation:
For the Demand to Management OMBP, Forecast Accuracy is the primary metric, as it evaluates how precisely demand predictions match actual market demand, a foundational step in effective supply chain planning. Calculated as a percentage (e.g., actual demand of 800 units versus a forecast of 850 yields 94% accuracy), it directly reflects the OMBP's ability to drive downstream processes like procurement and production. Option B (Supplier Lead Time) measures supplier performance, which affects supply execution but not demand forecasting accuracy. Option C (Inventory Turnover) tracks inventory movement efficiency, an outcome influenced by forecast accuracy, not a direct measure of the OMBP itself. Accurate forecasts prevent overproduction or shortages-for example, overestimating demand by 20% could lead to $50,000 in excess inventory costs, underscoring the metric's importance.

NEW QUESTION # 22
What is the purpose of the Available to Promise (ATP) process in Oracle Fusion Cloud SCM?

A. It ensures product availability commitments based on inventory and supply constraints.
B. It manages only supplier payments without impacting inventory levels.
C. It guarantees immediate product shipment for all orders.

Answer: A

Explanation:
The Available to Promise (ATP) process in Oracle Fusion Cloud SCM is designed to determine product availability and provide realistic commitments to customers based on current inventory levels and supply constraints, such as production capacity and supplier lead times. ATP calculates how much stock is "available to promise" for new orders by subtracting existing commitments from on-hand inventory and factoring in planned supply. For example, if a warehouse has 50 units of a product, with 20 already allocated to prior orders, ATP shows 30 units available for new promises. Option B is incorrect because ATP has no direct role in managing supplier payments-it focuses on inventory and supply planning. Option C is false as ATP does not guarantee immediate shipment; it provides feasible dates based on availability, not an unrealistic promise of instant delivery. This process supports accurate order promising, prevents stockouts, and aligns customer expectations with operational reality, making it a cornerstone of effective supply chain management.

NEW QUESTION # 23
What is the function of IDR (Intelligent Document Recognition) and OCR (Optical Character Recognition) in the invoice submission process in Oracle Fusion Cloud Procurement application?

A. IDR and OCR enhance invoice validation by cross-referencing invoice data with purchase orders and contracts, ensuring accuracy and compliance.
B. IDR and OCR enable automated routing of invoices to the appropriate approvers based on predefined rules and approval hierarchies.
C. IDR and OCR help capture and extract data from invoices, automating the data entry process and reducing manual effort.
D. IDR and OCR facilitate supplier registration by digitizing and organizing supplier information, including contact details and banking information.

Answer: C

Explanation:
In Oracle Fusion Cloud Procurement, IDR and OCR technologies are used to capture and extract data from invoices, automating the data entry process. OCR converts scanned invoice images into machine-readable text, while IDR intelligently interprets and extracts relevant fields (e.g., invoice number, amount). This reduces manual effort and errors. Option A (automated routing) is a downstream process, not the primary function of IDR/OCR. Option B (validation) is a secondary benefit, not the core purpose. Option D (supplier registration) is unrelated to invoice processing. This automation streamlines procurement workflows.

NEW QUESTION # 24
What is the role of automation in creating POs from contract fulfillment in Oracle Fusion Cloud Procurement?

A. It ensures that POs are created accurately based on contract terms, reducing manual errors, and improving efficiency.
B. It facilitates the approval process by routing POs to the appropriate approvers, based on invoice rules and limits.
C. It enhances supplier qualification by providing visibility into supplier responses.

Answer: A

Explanation:
In Oracle Fusion Cloud Procurement, automation plays a critical role in creating purchase orders (POs) from contract fulfillment by ensuring that POs are generated directly from agreed contract terms with high accuracy and minimal manual intervention. This process leverages predefined contract data-such as item details, pricing, quantities, and delivery schedules-to populate POs automatically, reducing errors like incorrect pricing or quantities that often occur in manual entry. For instance, if a contract specifies 100 units of a product at $10 each, automation ensures the PO reflects this exactly, bypassing the need for manual rekeying. Option A is incorrect because routing POs for approval is a subsequent step, not the primary role of automation in PO creation. Option C is unrelated, as supplier qualification pertains to evaluating suppliers, not PO generation. This automation improves efficiency by speeding up the procurement cycle, ensures compliance with contract terms, and frees procurement staff to focus on strategic tasks rather than clerical work. It also integrates with supplier collaboration tools to confirm details, further enhancing accuracy.

NEW QUESTION # 25
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