Cost Accounting in Oracle Fusion Cloud SCM is designed to track and analyze costs associated with
manufacturing processes, including material, labor, and overhead expenses. This function supports
financial reporting by providing detailed cost data and aids decision-making by offering insights into
cost drivers and profitability. Option A is incorrect because cost accounting does not prevent
fluctuations—it records and manages them. Option B is wrong as it encompasses supplier-related
costs, not just customer payments. By maintaining accurate cost records, this module ensures
compliance with accounting standards and enables strategic cost management.
Reference: Oracle Fusion Cloud SCM Documentation - "Cost Management Overview"
