1Z0-1163-1 practice question 10 of 15

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

Full set: 51 questions

Answer options

A: It calculates the total cost of a product by aggregating material, labor, and overhead expenses. Correct answer

B: It tracks only direct labor expenses, excluding materials.

C: It ensures material costs remain unchanged over time.

Correct Answer:

A. It calculates the total cost of a product by aggregating material, labor, and overhead expenses.

Explanation

Cost Rollup in Oracle Fusion Cost Management assembles the complete standard or actual cost of a finished item by recursively summing component material costs plus associated labor, machine, and overhead rates across all levels of the bill of materials.

Why Incorrect

B. It includes material, overhead, and indirect costs; not limited to direct labor.
C. Rollup refreshes costs when component costs change; it does not freeze material costs.

References

1. Oracle Fusion Cloud Cost Management, Using Cost Management 24A, “Roll Up Costs,” Chap 9, p. 215-218.

2. Oracle Fusion Cloud Manufacturing, Implementing Manufacturing 24A, Sec “Standard Cost Rollup,” p. 412.

3. MIT OpenCourseWare 15.761 “Intro to Production and Costing,” Lecture 8 notes, p. 5-6.

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