To implement a borrowed and lent scenario where the transfer price equals the raw cost, two key setups are required. First, the transfer price rule must be defined to use a basis of "Raw Cost" and a calculation method of "Basis Only." This ensures the transfer price is a direct pass-through of the cost without any markup. Second, the specific types of costs to be cross-charged, such as labor hours recorded via a "straight time" document entry, must be enabled for cross-charge processing. This is done by checking the "Process Cross-Charge" option in the document entry configuration.

B. Transfer price basis must be Burdened Cost, and calculation method must be Burden Rate Schedule.

This is incorrect as the requirement is for raw cost. Burdened cost includes overhead, and a rate schedule implies applying a rate, not a direct pass-through.

D. Transfer price basis must be Raw Cost and calculation method must be Rate Schedule.

Using a "Rate Schedule" calculation method would apply a rate or markup to the raw cost, which contradicts the requirement for no further adjustments.

Oracle Fusion Cloud Project Management Documentation

Chapter: Project Costing Configuration: Define Borrowed and Lent Accounting. "For borrowed and lent processing

the transfer price is the same as the raw cost of the transaction. To meet this requirement

you must define a transfer price rule with the basis of Raw Cost and the method of Basis Only."

Oracle Fusion Cloud Project Management Documentation

Chapter: Project Costing Configuration: How Cross-Charge Transactions Are Processed. "You must enable the document entry for cross-charge processing."