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Vce 1Z0-1163-1 Format - 1Z0-1163-1 Practice Test

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Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Sample Questions (Q21-Q26):

NEW QUESTION # 21
Which feature in Oracle Fusion Cloud SCM tracks and analyzes manufacturing costs?

A. Supplier Qualification.
B. Cost Accounting.
C. Manufacturing Execution.
D. Inventory Management.

Answer: B

Explanation:
Cost Accounting (D) in Oracle Fusion Cloud SCM tracks and analyzes manufacturing costs, including materials, labor, and overhead, to support financial reporting and decision-making. For example, it might break down a $10,000 production run into $6,000 materials, $3,000 labor, and $1,000 overhead, revealing cost drivers. Option A (Manufacturing Execution) tracks production activities but doesn't analyze costs. Option B (Supplier Qualification) assesses suppliers, not manufacturing expenses. Option C (Inventory Management) monitors stock, not cost details. Cost Accounting provides granular insights, enabling cost reduction strategies and accurate profitability analysis, essential for financial health.

NEW QUESTION # 22
What is a key advantage of the Production Order to Cost Update OMBP in Oracle Fusion Cloud SCM?

A. It enhances customer relationship management, leading to effective cost analysis.
B. It provides accurate cost calculations, leading to better decision-making and improved profitability.
C. It automates the production process, requiring minimal human supervision.
D. It provides real-time cost updates, ensuring immediate financial benefits.

Answer: B

Explanation:
The Production Order to Cost Update process within Oracle Manufacturing Business Process (OMBP) in Oracle Fusion Cloud SCM ensures accurate cost calculations by capturing and updating costs associated with production orders, such as materials, labor, and overhead. This accuracy supports better decision-making and improves profitability by enabling precise cost analysis and pricing strategies. Option A is irrelevant as it ties to CRM, not cost updates. Option B exaggerates automation-human oversight remains necessary. Option D focuses on real-time updates, which is secondary to the primary benefit of accuracy emphasized in Oracle documentation.

NEW QUESTION # 23
What is the purpose of the Back-to-Back Order Fulfillment process in Oracle Fusion Cloud SCM?

A. It links customer orders to supplier purchase orders for direct fulfillment.
B. It eliminates the need for supplier collaboration.
C. It delays order fulfillment until inventory is replenished.
D. It prioritizes warehouse stock over supplier sourcing.

Answer: A

Explanation:
The Back-to-Back Order Fulfillment process (D) links customer orders directly to supplier purchase orders, enabling direct fulfillment without relying solely on existing inventory. For example, a customer orders 50 custom widgets; the system generates a PO to the supplier, who ships directly or via the warehouse, reducing stock holding. Option A is incorrect-it favors supplier sourcing when stock is unavailable. Option B is false-it accelerates, not delays, fulfillment. Option C is wrong-supplier collaboration is essential. This process cuts inventory costs, speeds delivery, and supports make-to-order models efficiently.

NEW QUESTION # 24
What is the role of automation in creating POs from contract fulfillment in Oracle Fusion Cloud Procurement?

A. It facilitates the approval process by routing POs to the appropriate approvers, based on invoice rules and limits.
B. It enhances supplier qualification by providing visibility into supplier responses.
C. It ensures that POs are created accurately based on contract terms, reducing manual errors, and improving efficiency.

Answer: C

Explanation:
In Oracle Fusion Cloud Procurement, automation plays a critical role in creating purchase orders (POs) from contract fulfillment by ensuring that POs are generated directly from agreed contract terms with high accuracy and minimal manual intervention. This process leverages predefined contract data-such as item details, pricing, quantities, and delivery schedules-to populate POs automatically, reducing errors like incorrect pricing or quantities that often occur in manual entry. For instance, if a contract specifies 100 units of a product at $10 each, automation ensures the PO reflects this exactly, bypassing the need for manual rekeying. Option A is incorrect because routing POs for approval is a subsequent step, not the primary role of automation in PO creation. Option C is unrelated, as supplier qualification pertains to evaluating suppliers, not PO generation. This automation improves efficiency by speeding up the procurement cycle, ensures compliance with contract terms, and frees procurement staff to focus on strategic tasks rather than clerical work. It also integrates with supplier collaboration tools to confirm details, further enhancing accuracy.

NEW QUESTION # 25
Which feature in Oracle Fusion Cloud SCM provides real-time order promising based on supply and demand constraints?

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

Answer: B

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 # 26
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