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Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Sample Questions (Q27-Q32):

NEW QUESTION # 27
What is the primary function of Receipt Accounting in Oracle Fusion Cloud SCM?

A. It validates contract terms for procurement.
B. It records the receipt of goods and services, creating accounting entries for financial reporting.
C. It ensures supplier invoices are paid on time.
D. It eliminates the need for cost accounting.

Answer: B

Explanation:
Receipt Accounting (D) in Oracle Fusion Cloud SCM records the receipt of goods and services, generating accounting entries that reflect these transactions for financial reporting and cost tracking. When a shipment of 500 units arrives, Receipt Accounting logs the event, assigns costs (e.g., $5,000), and creates entries like "Inventory Debit" and "Accounts Payable Credit," ensuring financial accuracy. Option A is incorrect-timely invoice payment is a downstream accounts payable process, not Receipt Accounting's role. Option B is false-contract validation occurs in procurement, not here. Option C is wrong-Receipt Accounting feeds into Cost Accounting, enhancing, not eliminating it. This function ensures compliance with accounting standards, provides visibility into goods received, and supports accurate financial statements, bridging physical and financial supply chain activities.

NEW QUESTION # 28
What is the primary purpose of the Production Order to Cost Update OMBP in Oracle Fusion Cloud SCM?

A. It provides accurate cost calculations for better decision-making.
B. It ensures immediate financial benefits through real-time cost updates.
C. It enhances customer relationship management.
D. It automates the production process without human supervision.

Answer: A

Explanation:
The Production Order to Cost Update OMBP (D) in Oracle Fusion Cloud SCM focuses on providing accurate cost calculations by capturing and updating costs associated with production orders-materials, labor, and overhead-enabling better decision-making. For instance, if producing 100 units costs $1,000 (e.g., $500 materials, $300 labor, $200 overhead), this process ensures the total is reflected accurately, allowing managers to adjust pricing or reduce costs. Option A is misleading-while cost updates occur, the primary purpose is accuracy, not immediate financial gains, which are an outcome. Option B is incorrect-customer relationship management is unrelated to production costing. Option C overstates automation; human oversight is still required, and the focus is on cost, not process automation. Accurate cost data supports profitability analysis, budgeting, and strategic planning, making it a critical link between manufacturing and financial management.

NEW QUESTION # 29
Which feature in Oracle Fusion Cloud SCM provides real-time order promising based on supply and demand constraints?

A. Manufacturing Execution.
B. Cost Accounting.
C. Supplier Portal.
D. Global Order Promising.

Answer: D

Explanation:
Global Order Promising (A) provides real-time order promising by analyzing supply (inventory, production) and demand (orders, forecasts) constraints across the enterprise. For instance, if a customer requests 100 units and only 80 are available with a 2-day production lead time, GOP promises delivery in 2 days. Option B (Supplier Portal) supports collaboration, not promising. Option C (Manufacturing Execution) tracks production, not order commitments. Option D (Cost Accounting) handles financials. GOP enhances customer trust and planning accuracy by delivering feasible, data-driven promises.

NEW QUESTION # 30
Which activity is fundamental to the Insight to Sourcing OMBP, ensuring effective procurement and cost optimization?

A. Performance Monitoring, which assesses supplier ability to meet quality and service standards by utilizing audits, inspections, or performance reviews.
B. Spend Analysis, which involves categorizing and analyzing historical spending data to identify cost-saving opportunities and strategic sourcing decisions.
C. Idea Generation, which identifies market opportunities, incorporating trend analysis and internal innovation.

Answer: B

Explanation:
Spend Analysis (B) is the cornerstone of the Insight to Sourcing OMBP in Oracle Fusion Cloud SCM, as it involves categorizing and analyzing historical spending data to uncover cost-saving opportunities and inform strategic sourcing decisions. By examining past expenditures-e.g., identifying that 70% of spending on raw materials comes from a single supplier-businesses can negotiate better terms, consolidate suppliers, or shift to lower-cost alternatives, optimizing procurement costs. Option A (Idea Generation) is a preliminary step focused on innovation and market trends, not the core analytical activity driving sourcing. Option C (Performance Monitoring) evaluates supplier performance post-sourcing, not the initial insight process. For instance, Spend Analysis might reveal excessive spending on expedited shipping, prompting a shift to local suppliers, directly impacting cost efficiency and procurement strategy. This data-driven approach ensures decisions are grounded in financial reality, making it fundamental to the OMBP.

NEW QUESTION # 31
What is the primary function of Cost Rollup in Oracle Fusion Cloud SCM?

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

Answer: C

Explanation:
Cost Rollup (C) in Oracle Fusion Cloud SCM calculates the total cost of a product by aggregating material, labor, and overhead expenses across production stages. For instance, a widget might cost $10 total-$5 materials, $3 labor, $2 overhead-rolled up from raw inputs to finished goods. Option A is false-Cost Rollup enhances, not eliminates, cost accounting by providing detailed data. Option B is incorrect-it includes all cost components, not just labor. Option D is wrong-costs fluctuate with market conditions; Rollup reflects current values. This function ensures accurate pricing, profitability analysis, and cost control, critical for financial decision-making and competitive strategy.

NEW QUESTION # 32
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