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Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Sample Questions (Q35-Q40):

NEW QUESTION # 35
What is the primary purpose of the Production Order to Cost Update OMBP in Oracle Fusion Cloud SCM?

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

Answer: B

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 # 36
What is a primary function of Cost Accounting in Oracle Fusion Cloud SCM?

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

Answer: B

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 # 37
What is the primary function of Cost Rollup in Oracle Fusion Cloud SCM?

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

Answer: B

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 # 38
What is the main purpose of the Supply Chain Collaboration feature in Oracle Fusion Cloud SCM?

A. It automates internal financial reporting without supplier interaction.
B. It enables real-time communication between suppliers and buyers for improved supply chain visibility.
C. It eliminates the need for supplier contracts.

Answer: B

Explanation:
The Supply Chain Collaboration feature in Oracle Fusion Cloud SCM facilitates real-time communication between suppliers and buyers through tools like the Supplier Portal, improving visibility into supply chain activities such as order status and inventory levels. Option A is incorrect as it involves supplier interaction, not just internal reporting. Option B is false-contracts remain essential. This collaboration enhances coordination and responsiveness across the supply chain.

NEW QUESTION # 39
What is the primary purpose of the Supply Chain Orchestration process in Oracle Fusion Cloud SCM?

A. It provides a manual approach to tracking supply chain transactions.
B. It automates the execution of supply chain tasks across different applications.
C. It only manages warehouse operations without linking to procurement or manufacturing.
D. It eliminates the need for supplier collaboration.

Answer: B

Explanation:
The Supply Chain Orchestration process (C) in Oracle Fusion Cloud SCM automates the execution of supply chain tasks across applications like procurement, manufacturing, and inventory management. It coordinates activities-e.g., triggering a PO when inventory is low or scheduling production after an order-ensuring seamless integration. Option A is false-supplier collaboration is often required. Option B is incorrect-it links all supply chain areas, not just warehouses. Option D is wrong-automation replaces manual tracking. For example, if a customer order requires 200 units, Orchestration aligns procurement and production automatically, reducing delays and errors, and enhancing end-to-end visibility.

NEW QUESTION # 40
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