THE ULTIMATE GUIDE TO PASSING ORACLE 1Z0-1163-1 EXAM

The Ultimate Guide to Passing Oracle 1Z0-1163-1 Exam

The Ultimate Guide to Passing Oracle 1Z0-1163-1 Exam

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Oracle Fusion Cloud Applications SCM Foundations Associate - Rel 1 Sample Questions (Q15-Q20):

NEW QUESTION # 15
What is the primary purpose of the Production Order to Cost Update OMBP in Oracle Fusion Cloud SCM?

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

Answer: C

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

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

Answer: A

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

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

Answer: A

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 # 18
Which feature in Oracle Fusion Cloud SCM tracks and analyzes manufacturing costs?

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

Answer: D

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 # 19
What is the primary purpose of the Demand to Management OMBP in Oracle Fusion Cloud SCM?

  • A. It ensures accurate demand forecasting and planning.
  • B. It focuses only on local inventory availability.
  • C. It guarantees same-day delivery for all orders.
  • D. It eliminates the need for supplier collaboration.

Answer: A

Explanation:
The Demand to Management OMBP (C) in Oracle Fusion Cloud SCM ensures accurate demand forecasting and planning, translating market signals into actionable supply strategies. It uses tools like machine learning and collaborative forecasting to predict demand-e.g., forecasting 1,000 units for a holiday season-and aligns inventory and production accordingly. Option A is incorrect-it addresses enterprise-wide demand, not just local stock. Option B is false-no process guarantees same-day delivery; it focuses on planning. Option D is wrong-supplier collaboration is integral to fulfilling demand. This OMBP minimizes overstocking or shortages, optimizing resources and enhancing customer service through precise planning.


NEW QUESTION # 20
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