Which three statements are true about the main areas of Managerial Accounting?
Options:
A.
Receipt Accounting Is the application that performs accrual accounting for all types of receipts.
B.
Landed Cost Management gives organizations financial visibility into their extended supply chain costs.
C.
Supply Chain Orchestration automatically selects the correct process based on user-defined Subledger Accounting rules when a supply creation Is initiated.
D.
Cost method can be defined with granularity down to individual Items.
In Oracle Manufacturing Cloud and related financial applications, managerial accounting plays a significant role in tracking and managing costs across supply chain and manufacturing activities. The following is a breakdown of the correct statements:
Statement A:Receipt Accounting is the application that performs accrual accounting for all types of receipts– Receipt Accounting is a crucial module in Oracle Cloud that supports the tracking of costs and performs accruals related to receipts. This includes processes such as procurement receipts, interorganization transfers, and supplier shipments. This allows organizations to recognize and account for the expenses associated with these receipts.
[: Oracle Cloud SCM Documentation for Receipt Accounting outlines how the system manages accruals and matches them with purchase orders and invoices., Statement B:Landed Cost Management gives organizations financial visibility into their extended supply chain costs– Landed Cost Management is designed to capture additional costs that arise during the transportation, handling, and processing of goods. This includes costs like shipping, insurance, and customs duties. By including these in the overall cost, it provides a more comprehensive view of the actual costs of goods in the supply chain., Reference: Oracle Fusion SCM Guide, "Landed Cost Management," describes how it aggregates various indirect supply chain costs to give better financial visibility., Statement D:Cost method can be defined with granularity down to individual items– In Oracle Manufacturing Cloud, costing methods can be assigned not only at the organization level but also at a granular level down to individual items. This provides flexibility in defining different costing strategies for different products depending on their nature, manufacturing process, or market conditions., Reference: Oracle Manufacturing Cloud User Guide explains the flexibility in configuring cost methods at different organizational and item-specific levels., Incorrect Statements:, Statement C:Supply Chain Orchestration automatically selects the correct process based on user-defined Subledger Accounting rules when a supply creation is initiated– While Supply Chain Orchestration automates various supply chain processes, it does not select processes based on Subledger Accounting rules. The orchestration system is more focused on managing and coordinating supply chain processes rather than determining accounting rules., ]
Question 2
Which two reports provide work order cost-related information to Costing users?
Options:
A.
Work Order Operational Analysis
B.
Receipt Accounting Dashboard
C.
WIP Balance by Plant
D.
Purchase Variance Summary
Answer:
A, C
Explanation:
The following reports providecost-related informationto Costing users in Oracle Manufacturing Cloud:
Work Order Operational Analysis (A): This report provides detailed information on the operations performed in a work order, including cost-related data, helping costing users analyze production efficiency and associated costs.
WIP Balance by Plant (C): This report gives costing users insight into work-in-progress (WIP) balances for each plant, showing the costs associated with incomplete work orders and materials in the production process.
Incorrect options:
Receipt Accounting Dashboard (B)is used for receipt-related accounting, not work order costs.
Purchase Variance Summary (D)focuses on purchase price variances, not work order-related costs.
[: Oracle Cloud SCM Cost Management guides describe how theWork Order Operational AnalysisandWIP Balance by Plantreports help costing users track and analyze costs associated with work orders., ]
Question 3
Which statement is NOT true about cumulative lead time?
Options:
A.
It calculates cumulative manufacturing lead times by rolling up manufacturing lead times of make Items.
B.
It updates the item's lead time attributes at the end of the calculation process: cumulative manufacturing and cumulative total lead times.
C.
It calculates cumulative total lead times by rolling up lead times of make items and adding up lead time values of buy items.
D.
It updates lead time percent at the operation level in the work definition.
Answer:
D
Explanation:
Cumulative lead time is a key concept in Oracle Manufacturing Cloud, where it calculates the total time required to manufacture an item. The following points clarify the calculations:
Statement Dis incorrect because cumulative lead time doesnotupdate the lead time percent at the operation level in the work definition. Instead, cumulative lead time focuses on rolling up the lead times of bothmakeandbuyitems to provide an overall lead time for the entire production process.
Correct Statements:
Statement A: The system calculates cumulative manufacturing lead time by summing up the lead times of all make items in the production process.
Statement B: At the end of the cumulative lead time calculation process, it updates the lead time attributes of the item, specifically cumulative manufacturing and cumulative total lead times.
Statement C: Cumulative total lead time includes both make and buy item lead times, representing the complete production cycle from procurement to manufacturing.
[: Oracle Cloud SCM guide on "Lead Time Calculations" explains how cumulative lead times are calculated and updated but does not mention lead time percent at the operation level., ]