Free 1Z0-1074-21 Practice Test Questions and Answers (2026)

Financial routes are created in Cost and Profit Planning (task: Manage Financial Routes). Once the route is saved, it must be assigned to a Trade Operations template so the Landed Cost application can select it while creating trade operations. Only this pairing (Cost and Profit Planning + Trade Operations Template) establishes the financial-route logic that diverges from the physical path.

B. Routes aren’t defined from Functional Setup Manager; the route object exists only in Cost and Profit Planning.

C. Manage Charge Invoice Associations links invoices to charge types, not to routes.

D. No route-creation UI exists inside Landed Costs; only association is possible there.

E. Association must be via a Trade Operations template, not directly to Trade Operations.

1. Oracle Fusion Cloud SCM: Using Landed Cost Management 21C

“Create Financial Routes”

p. 19-21 – defines route in Cost & Profit Planning then assign to Trade Operations template.

2. Oracle Fusion Cloud SCM: Implementing Cost Management 21C

ch. “Financial Routes”

p. 135 – confirms association step.

The Review Work Order Costs page provides a comprehensive breakdown of the costs associated with a specific manufacturing work order. It displays the costs incurred for inputs, which include materials and resources consumed. It also shows the value of the outputs, which are the completed assemblies. Additionally, the page details any scrap costs reported against the work order and calculates and displays any standard cost variances, which represent the difference between the standard costs and the actual costs incurred.

B. Variable Costs: This is a cost classification (variable vs. fixed) and not a specific cost category displayed on the Review Work Order Costs UI.

D. Incremental Costs: This is a decision-making concept representing the additional cost of one alternative over another, not a standard component on this UI.

1. Oracle Fusion Cloud SCM

Using Cost Management

23D

Chapter 5: Work Order Costing

Section: "Review Work Order Costs". The documentation details the UI components

including tabs and fields for Input Costs

Output Costs

Scrap Costs

and Variances.

2. Oracle Fusion Cloud SCM

Implementing Cost Management

23D

Chapter 4: Work Order Costing

Section: "How Work Order Costs are Processed". This section describes the cost elements captured

which align with inputs

outputs

scrap

and variances.

The Receipt Accounting work area overview page features predefined infolets that provide a summary of key information and statuses. Based on the available options, the four areas are Receipt Accounting Processes, Cleared Accruals, Receiving Balances, and Receipt Accounting Transactions. These infolets allow users to monitor the status of scheduled processes, view the value of accrual balances (including cleared amounts), and identify transactions that may require attention. Note: Official documentation lists "Period Close" as an infolet, which is not present in this option, indicating a potential discrepancy in the question's options versus current application versions. However, this option is the closest match.

B. "Accrual Schedule" is not a predefined infolet on the Receipt Accounting overview page; it is a report or a detailed view, not a top-level summary area.

C. This option incorrectly includes "Accrual Schedule" and omits the "Receipt Accounting Transactions" infolet, which is a standard component for highlighting transactions needing review.

D. This option incorrectly omits the "Receipt Accounting Transactions" infolet, which is a key area for users to manage exceptions and transactions requiring attention.

E. "Review Journal Entries" is a task, not a predefined summary area or infolet on the overview page. This option also incorrectly includes "Accrual Schedule".

Oracle Fusion Cloud SCM

Using Receipt Accounting

23D

Chapter: Receipt Accounting Work Area

Section: "Overview Page". This section details the standard infolets: Receipt Accounting Processes

Accrual Balances

Transactions

and Period Close. Option A is the closest available choice.

Item cost profiles are a key component for defining costing behavior in Oracle Cost Management. They are defined within a specific Cost Organization and Cost Book combination. While a default cost profile is set at the Cost Organization level, Oracle provides the flexibility to assign different cost profiles to different items within that same organization. This allows for granular control over costing, enabling different items to have distinct cost calculation rules, such as different overhead rates or component cost definitions. Therefore, the cost profile is ultimately applied at the item level.

A. Cost profiles are defined at the Cost Organization level, not the Inventory Organization level, and different cost profiles can be used within one organization.

C. While defined at the cost organization level, it is not mandatory for all items within that organization to use the same profile; overrides are possible.

D. The default cost profile is defined at the cost organization level, not the item category level, and overrides are applied directly to items.

1. Oracle SCM Cloud

Implementing Cost Management

Release 21D

Chapter 3: Cost Profiles

Section: "Overview of Cost Profiles". The documentation states

"You can assign cost profiles to items to create exceptions to the default cost profile that's assigned to the cost organization and book."

2. Oracle SCM Cloud

Using Cost Management

Release 21D

Chapter 2: Cost Foundation

Section: "Cost Profiles". It explains

"A cost profile is a set of user-defined defaults that determine how costs are calculated for items... You can assign different cost profiles to different items."

The end-to-end process for costing procurement transactions involves several sequential steps. First, goods are received in the Receiving module. Next, the "Transfer Transactions from Receiving to Costing" process must be run. This job moves the transaction details from the receiving subledger into the Cost Management interface tables. Only after these transactions are available in Cost Management can the "Create Receipt Accounting Distributions" process successfully create the initial accounting distributions for the receipt. If the receipt is not appearing, it indicates the prerequisite transfer process was missed.

A. This process name is not standard; data flows from Receiving to Costing, not directly from the core Procurement module for this purpose.

B. This process is for transferring costs related to supplier invoices from the Payables module, not for purchase order receipts.

C. The Create Accounting process is run after distributions are created in the subledger to generate final journal entries for the General Ledger.

D. This is a period-end maintenance process used to manage and clear outstanding receipt accrual balances, not for processing new transactions.

1. Oracle SCM Cloud

Using Cost Management

Release 21D

Chapter 6: Cost Accounting

Section: "Receipt Accounting". The documentation outlines the process flow

stating

"You must first run the Transfer Transactions from Receiving to Costing process to make the transactions available for processing in Cost Management."

2. Oracle SCM Cloud

Implementing Cost Management

Release 21D

Chapter 4: Receipt Accounting

Section: "How Receipt Accounting Works". This guide explains that receipt accounting processes transactions that have been successfully transferred from Oracle Fusion Receiving.

The "Profit in Inventory" cost element is a specialized feature in Oracle Cost Management designed to track internal markups on inventory transferred between different business units. This segregation of internal profit is crucial for two main reasons. First, it allows for accurate analysis of the value added by each internal business unit, thus revealing true profit margins. Second, it facilitates consolidated financial reporting by enabling the easy identification and elimination of this unrealized intercompany profit, which is a standard requirement in corporate accounting to prevent a company from recognizing profit on transactions with itself.

A. This is used specifically to model and maintain an arm's length relationship for internal transfer pricing and accounting, not when one is not needed.

E. This cost element is for transfers between different business units; transfers within the same business unit do not generate intercompany profit.

1. Oracle SCM Cloud

Using Cost Management

Release 21D

Chapter 6: Cost Accounting

Section: "Profit in Inventory Cost Element". The documentation states

"Use the profit in inventory cost element to track the profit when inventory is transferred between business units... This enables you to eliminate the profit in inventory from your consolidated financial statements."

2. Oracle SCM Cloud

Implementing Manufacturing and Supply Chain Materials Management

Release 21D

Chapter 11: Set Up Cost and Profit Center Accounting

Section: "Manage Profit in Inventory Cost Elements". This section details the setup for tracking "internal markups for items that are transferred between different business units."

Receipt Accounting is a centralized application that processes and accounts for all receipts in a single location. Its key features include creating accounting distributions for accruals upon receipt of goods or services. It provides tools to review these journal entries to ensure accuracy. A critical function is the ability to manage and adjust the receipt accrual clearing balances, which is essential for period-end reconciliation between procurement, payables, and the general ledger. These tasks form the core of the Receipt Accounting work area.

A. Analyze Standard Purchase Cost Variances: This is a function of Cost Accounting, used to compare standard costs with actual purchase order prices, not a primary feature of Receipt Accounting.

C. Review Item Costs: This is a core task within the Cost Accounting work area, focusing on the setup and analysis of item costs, not receipt accruals.

1. Oracle Fusion Cloud SCM

Using Receipt Accounting

23D

Chapter 2: Receipt Accounting. "The Receipt Accounting work area provides you with the tools to create receipt accounting distributions

and to review and adjust receipt accrual clearing balances."

2. Oracle Fusion Cloud SCM

Implementing Manufacturing and Supply Chain Materials Management

23D

Chapter 15: Receipt Accounting. "Key features include... Create accruals for uninvoiced receipts... Review receipt accounting distributions... Manage accrual clearing." The process flow includes "Create Receipt Accounting Distributions" and "Manage Accrual Clearing Balances". Reviewing journal entries is an inherent part of this process.

To maintain and value costs differently for specific groups of subinventories within the same inventory organization, you must use valuation units. A valuation unit defines the level at which costs are held. By creating one valuation unit for the group of normal goods subinventories and a separate one for the returned goods subinventory, you establish the necessary segregation. Subsequently, you can assign different cost profiles to items within these distinct valuation units to apply different costing policies.

A: A cost organization can only be associated with a single cost book for a given ledger, making this setup impossible.

B: Subinventories are components of an inventory organization, not a cost organization. This structure is not supported.

C: Cost profiles are applied at the valuation unit level. The valuation units must be defined first before a profile can be applied to them.

E: This describes a non-existent parameter. The costing level (valuation unit scope) is defined within the cost profile, not as an inventory organization parameter.

1. Oracle Fusion Cloud SCM

Implementing Cost Management

Release 21D

F39246-02

Chapter 3: Cost Organizations

Section: "Valuation Units". The documentation states

"A valuation unit is a cost organization

an inventory organization

or a subinventory at which the item cost is maintained... You can group subinventories into a valuation unit to maintain a single cost for an item across those subinventories."

2. Oracle Fusion Cloud SCM

Using Cost Management

Release 21D

F39247-02

Chapter 2: Cost Planning

Section: "Cost Profiles". This section explains that cost profiles

which define the cost method and other policies

are assigned to items at a specific valuation unit.

When subledger journal entry rule sets show incomplete status, two specific steps are required in the proper sequence. First, you must validate the rule sets using the "Validate Journal Entry Rule Set" function to ensure they meet all technical requirements and have no errors. Second, you must add these validated rule sets to the accounting method through the "Manage Accounting Methods" task, which establishes the connection between the rules and the ledger configuration for journal generation.

A. "Activate Accounting Methods" is run after rule sets are already added to methods, not for incomplete rule sets.

C. "Activate Subledger Journal Entry Rule Set Assignments" process name doesn't exist in Oracle Cloud terminology.

D. "Manage Journal Entry Rule Set" task is for creating/editing rules, not for enabling journal generation.

1. Oracle Cloud Applications: Using Subledger Accounting

Release 21A

Chapter 4: "Validating Journal Entry Rule Sets"

pp. 4-12 to 4-15

2. Oracle Fusion Applications Financials Implementation Guide

Release 21

Section 7.3: "Accounting Methods Configuration"

Document ID: E48434-21

3. Oracle Cloud ERP: Implementing Accounting Hub

Release 21B

"Journal Entry Rule Set Lifecycle"

pp. 8-3 to 8-7

Document ID: F42889-01

When a cost estimation or rollup process runs, the system must select a single work definition for an item if multiple exist. The primary criterion used as a tie-breaker is the 'Costing Priority' assigned to the work definition; the one with the highest priority (lowest number) is chosen. In the specific case of configure-to-order (CTO) or assemble-to-order (ATO) items, the selection is driven by the specific configuration being costed, which is identified by its unique 'unit number'.

A. The system is designed to handle alternates; the absence of alternates is a condition, not a selection criterion for choosing among multiple existing definitions.

C. Production priority is used by Oracle Manufacturing to rank work orders for execution on the shop floor, not for selecting a work definition for costing.

D. The lowest production cost is an output or result of a cost estimation scenario, not an input criterion for selecting the work definition to be used.

1. Oracle SCM Cloud

Using Cost Management

Release 21D

Chapter 6: Cost Planning

Section: "How Work Definitions Are Selected for Cost Rollup". "If there are multiple primary work definitions

the process uses the one with the highest costing priority (the work definition with the lowest number in the Costing Priority field)." This supports option E.

2. Oracle SCM Cloud

Using Manufacturing

Release 21D

Chapter 4: Work Definitions

Section: "Work Definitions for Process Manufacturing: Explained". "For assemble-to-order (ATO) models

you can create a work definition for the ATO model... The work definition for a configured item is dynamically created based on the options that a customer selects..." The specific configuration is tracked by a unit number

supporting option B.