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Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Sample Questions (Q38-Q43):

NEW QUESTION # 38
Which function does the Global Order Promising component serve in Oracle Fusion Cloud SCM?

A. It focuses only on local supplier availability.
B. It provides real-time order promising based on supply and demand constraints.
C. It guarantees order fulfillment within 24 hours.

Answer: B

Explanation:
Global Order Promising (GOP) in Oracle Fusion Cloud SCM provides real-time order promising by evaluating supply and demand constraints across the enterprise, ensuring accurate delivery commitments. Option A is incorrect as GOP considers global, not just local, availability. Option C is false-it doesn't guarantee a 24-hour fulfillment but provides feasible timelines. This enhances customer satisfaction and planning accuracy.

NEW QUESTION # 39
Which feature in Oracle Fusion Cloud SCM ensures optimal inventory levels by predicting demand and adjusting supply plans?

A. Cost Accounting.
B. Supplier Qualification.
C. Manufacturing Execution.
D. Replenishment Planning.

Answer: D

Explanation:
Replenishment Planning (C) in Oracle Fusion Cloud SCM ensures optimal inventory levels by predicting demand and adjusting supply plans proactively. Using forecasts-e.g., expecting 300 units next month-it triggers replenishments to maintain stock (e.g., ordering 250 units when levels hit 50), avoiding overstock or shortages. Option A (Cost Accounting) tracks costs, not inventory levels. Option B (Supplier Qualification) evaluates suppliers, not stock planning. Option D (Manufacturing Execution) manages production, not replenishment. This feature balances cost and availability, reducing waste (e.g., $5,000 in excess stock) and ensuring service continuity.

NEW QUESTION # 40
Which process in Oracle Fusion Cloud SCM ensures that inventory levels are maintained efficiently?

A. Cost Accounting.
B. Supplier Qualification.
C. Manufacturing Execution.
D. Replenishment Planning.

Answer: D

Explanation:
Replenishment Planning (D) in Oracle Fusion Cloud SCM ensures inventory levels are maintained efficiently by predicting demand and adjusting supply plans to replenish stock proactively. It uses forecasts and safety stock rules-e.g., ordering 300 units when stock falls to 50 and demand is expected to rise-to prevent shortages or excess inventory. Option A (Supplier Qualification) focuses on supplier evaluation, not inventory maintenance. Option B (Cost Accounting) tracks financials, not stock levels. Option C (Manufacturing Execution) manages production, not replenishment. Replenishment Planning optimizes inventory turnover, reduces carrying costs, and ensures product availability, making it a proactive inventory management tool.

NEW QUESTION # 41
What is the function of Cost Rollup in Oracle Fusion Cloud SCM?

A. It tracks only direct labor expenses, excluding materials.
B. It ensures material costs remain unchanged over time.
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 # 42
What is the primary function of Receipt Accounting in Oracle Fusion Cloud SCM?

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

Answer: C

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 # 43
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