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Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Sample Questions (Q14-Q19):

NEW QUESTION # 14
What is the function of Cost Rollup in Oracle Fusion Cloud SCM?

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

Answer: B

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 # 15
What is a primary function of Cost Accounting in Oracle Fusion Cloud SCM?

A. It records only customer payments, excluding supplier invoices.
B. It prevents any fluctuations in material costs.
C. It tracks and analyzes manufacturing costs to support financial reporting and decision-making.

Answer: C

Explanation:
Cost Accounting in Oracle Fusion Cloud SCM is designed to track and analyze costs associated with manufacturing processes, including material, labor, and overhead expenses. This function supports financial reporting by providing detailed cost data and aids decision-making by offering insights into cost drivers and profitability. Option A is incorrect because cost accounting does not prevent fluctuations-it records and manages them. Option B is wrong as it encompasses supplier-related costs, not just customer payments. By maintaining accurate cost records, this module ensures compliance with accounting standards and enables strategic cost management.

NEW QUESTION # 16
What is a key feature of the Back-to-Back Order Fulfillment process in Oracle Fusion Cloud SCM?

A. It prioritizes warehouse stock over supplier sourcing.
B. It delays order fulfillment until inventory is replenished.
C. It links customer orders to supplier purchase orders, ensuring direct fulfillment.

Answer: C

Explanation:
The Back-to-Back Order Fulfillment process (A) in Oracle Fusion Cloud SCM links customer orders directly to supplier purchase orders, ensuring seamless fulfillment without relying solely on existing inventory. When a customer order is placed, the system automatically generates a corresponding PO to the supplier, who ships the goods directly or via the warehouse to the customer. For example, if a retailer orders a custom machine not in stock, Back-to-Back triggers a PO to the manufacturer, streamlining delivery. Option B is incorrect-it aims for efficiency, not delays. Option C is wrong-it prioritizes supplier sourcing over warehouse stock when needed. This feature reduces inventory holding costs, improves cash flow, and ensures timely delivery, making it ideal for make-to-order scenarios.

NEW QUESTION # 17
Which feature in Oracle Fusion Cloud SCM ensures that supply planning recommendations reflect the latest supplier information?

A. Real-time Supplier Collaboration.
B. Using separate forecasting models for procurement and supply chain planning.
C. Increasing reorder points in inventory management.
D. Implementing manual verification of supplier information.

Answer: A

Explanation:
Real-time Supplier Collaboration (C) in Oracle Fusion Cloud SCM ensures supply planning reflects the latest supplier information by integrating live data-e.g., lead times, inventory availability-via tools like the Supplier Portal. If a supplier updates a lead time from 5 to 7 days, planning adjusts instantly. Option A (increasing reorder points) is a static fix, not real-time. Option B (manual verification) contradicts automation goals. Option D (separate models) fragments planning, reducing accuracy. For example, real-time updates might prevent a stockout by rescheduling a delayed shipment, enhancing agility and precision in supply plans.

NEW QUESTION # 18
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. Supplier Lead Time, which measures supplier response efficiency.
C. Forecast Accuracy, evaluates the precision of demand predictions against actual market demand.

Answer: C

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 # 19
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