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.
Reference: Oracle Fusion Cloud SCM Documentation - "Cost Rollup Overview"
