1Z0-1057-26 practice question 18 of 25

Your company uses an accounting calendar with periods that are identical to calendar months. A contract resource has been identified to work for six…

Full set: 126 questions

Your company uses an accounting calendar with periods that are identical to calendar months. A contract resource has been identified to work for six months on an accounting close cycle project. The resource is planned to start with 10 days left in the first period and to end 20 days into the last period. For the remaining periods, the resource must be loaded on all working days of the month. You are required to distribute the budget, forecast, and planning amounts across periods based on the task duration. Which predefined spread curve must be used to meet this requirement? (Choose the best Answer)

Answer options
A:

A. Daily Spread Basis

Correct answer
B:

B. Back Loaded

C:

C. Bell Curve

D:

D. S-Curve

E:

E. Even

Correct Answer:
A. A. Daily Spread Basis
Explanation

The requirement is to distribute budget and forecast amounts proportionally to the number of working days in each accounting period over the life of a task. The scenario describes partial work in the first and last periods and full work in the intervening periods. The "Daily Spread Basis" spread curve is designed for this exact purpose. It calculates a daily rate by dividing the total amount by the total number of days in the task's duration. It then allocates amounts to each period by multiplying this daily rate by the number of working days in that specific period.

Why Incorrect

B. Back Loaded concentrates costs toward the end of the duration, which does not match the requirement for proportional daily distribution.
C. Bell Curve distributes amounts in a bell shape, with less at the beginning and end and more in the middle, not based on daily work.
D. S-Curve follows a specific cumulative pattern (slow-fast-slow), which is different from a proportional daily allocation.
E. Even spread curve distributes the amount equally across all periods, ignoring the different number of working days in the partial start and end periods.

References

1. Oracle Fusion Cloud Project Management Documentation, "Spread Curves: Explained". This document provides definitions for all predefined spread curves. For "Daily Spread Basis," it states: "Distributes amounts based on the number of days in a period... The periodic amount is the daily rate multiplied by the number of days in the period."

2. Oracle Fusion Cloud Project Management Documentation, "Create a Project Budget or Forecast Version: Procedure". Section: Generating Amounts. This section describes how spread curves are used to distribute amounts over periods.

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