oracle 1z0-1057-20 practice test

Question 1

Your customer wants to see how quantity, cost, and revenue amounts are automatically distributed by using Spread Curve.
Identify two period options that are available for this purpose. (Choose two.)

• A. Calendar Types
• B. Project Accounting Periods
• C. Accounting Periods
• D. PA Calendar
• E. PA-GL Periods

Answer:

B C

Explanation:
Reference https://fusionhelp.oracle.com/helpPortal/topic/TopicId_P_87F467307D50416BE040D30A68816855
Spread curves let you distribute quantity, cost, and revenue amounts automatically across accounting or project accounting
periods. You assign a spread curve to each resource class. Planning resources (in the planning resource breakdown
structure) inherit the spread curve setting from the associated resource class. You can change the spread curve for the
planning resource and for any corresponding task assignments, or budget or forecast lines.

Question 2

Your customer wants to automatically allocate unassigned asset lines and common costs across multiple assets
based on the construction-in-process cost of each asset. Identify the asset allocation method that you must use as the
default method while configuring project types to meet this requirement. (Choose the best answer.)

• A. Standard Unit Cost
• B. Actual Unit
• C. Current Cost
• D. Estimated Cost
• E. Spread Evenly

Answer:

C

Explanation:
Ref:
https://docs.oracle.com/en/cloud/saas/project-portfolio-management/19a/oapfm/project-foundation-configuratio
Topic Asset Cost Allocation Methods: Explained
The asset cost allocation method determines how indirect or common costs incurred on a project are allocated to multiple
assets.
You can specify an asset cost allocation method to enable Oracle Fusion Project Costing to automatically allocate
unassigned asset lines and common costs across multiple assets. Unassigned asset lines typically occur when more than
one asset is assigned to an asset grouping level.
Projects and project templates inherit a default asset cost allocation method from the associated project type.
You can override the default at the project level. If you use capital events to allocate costs, then you can also override the
asset cost allocation method at the event level.
The following table describes the available asset cost allocation methods. Method
Basis of Cost Allocation Actual Units
Number of units defined for each asset Current Cost
Construction-in-process (CIP) cost of each asset Estimated Cost
Estimated cost of each asset Standard Unit Cost
Combination of the standard unit cost and the number of units defined for each asset Spread Evenly
Equal allocation of cost to each asset

Question 3

Your organization has been using project class categories and codes for reporting purposes and is set up at the project level.
You recently defined a new project type, Capital-Contract, and created new class categories named Build, Operate, and
Transfer (BOT) and Build, Transfer, and Maintain (BTM), with class codes of Yes/No. But on creation of a project, you are
unable to associate these class categories and codes.
Identify two setups that are mandatory for these class categories and codes to be displayed. (Choose two.)

• A. Class codes should be associated with a related set code.
• B. Class categories should be assigned to business unit.
• C. Class categories should be assigned to project type.
• D. Class codes should be assigned to project unit.

Answer:

A C

Explanation:
Ref:
https://docs.oracle.com/en/cloud/saas/project-portfolio-management/19a/oapfm/project-foundation-configuratio
Topic - Associating Project Types and Class Categories: Examples
Project classifications group your projects according to categories and codes that you define. When you associate project
classifications with project types, the classification is available for selection on projects with that project type.

Use any of the following methods to associate class categories with project types: Add a classification to the project type
definition
For each classification that you associate with the project type, you can enable the Assign to All Projects option to
automatically add the classification to the project definition for all new projects with the project type. When this option is
enabled, all projects with this project type must be assigned a class code for the class category.

Add a project type to the class category definition

Enable the Assign to all Project Types option on the class category definition

Question 4

Your customer wants to assign the Net 45 payment term to all sets except for the corporate business unit specific set, which
is assigned the Net 15 payment term. At transaction entry, the list of values for payment terms consists of only one set of
data: the set that is assigned to the transaction's business unit.
Which reference data sharing method would you set up to meet the customer requirement? (Choose the best answer.)

• A. assignment to one set only with common values
• B. assignment to one set only; no common values allowed
• C. assignment to multiple sets; common values allowed
• D. assignment to multiple sets; no common values allowed

Answer:

D

Explanation:
Reference
https://docs.oracle.com/en/cloud/saas/applications-common/19b/facia/define-enterprise-structures.html#FACIA4
Reference Data Sharing Methods
Variations exist in the methods used to share data in reference data sets across different types of objects. The following list
identifies the methods:
Assignment to one set only, no common values allowed. This method is the simplest form of sharing
reference data that allows assigning a reference data object instance to one and only one set. For example, Asset Prorate
Conventions are defined and assigned to only one reference data set. This set can be shared across multiple asset books,
but all the values are contained only in this one set.
Assignment to one set only, with common values. This method is the most commonly used method of sharing reference data
that allows defining reference data object instance across all sets. For example, Receivables Transaction Types are
assigned to a common set that is available to all the business units. You need not explicitly assign the transaction types to
each business unit. In addition, you can assign a business unit-specific set of transaction types. At transaction entry, the list
of values for transaction types includes the following:
Transaction types from the set assigned to the business unit.
Transaction types assigned to the common set that is shared across all business units.
Assignment to multiple sets, no common values allowed. The method of sharing reference data that allows a reference data
object instance to be assigned to multiple sets. For instance, Payables Payment Terms use this method. It means that each
payment term can be assigned to one or more than one set. For example, you assign the payment term Net 30 to several
sets but assign Net 15 to a set specific only to your business unit. At transaction entry, the list of values for payment terms
consists of only the set that is assigned to the transaction's business unit.
Note: Oracle Fusion Applications contains a reference data set called Enterprise. Define any reference data that affects your
entire enterprise in this set. Also update the data set going forward as you create new reference data items.

Question 5

Your organization performs revenue recognition based on the Labor and Non-labor Burden schedule types. Identify the
setup required to enable this kind of revenue recognition. (Choose the best answer.)

• A. Create a revenue method with a revenue method classification of Amount Based.
• B. Create a revenue method with a revenue method classification of Rate Based.
• C. Create a revenue method classification with a revenue method of Percent Spent.
• D. Create a revenue method classification with a revenue method of Percent Complete.

Answer:

B

Question 6

Which two statements are true about the cross-charge method, Borrowed and Lent?

• A. This method creates accounting entries that move an amount equal to the transfer price between the provider and receiver organizations within a legal entity.
• B. Costs or revenue are shared based on transfer price rules with this method.
• C. You must set up the contract business unit to use this method.
• D. This method creates a formal internal invoice.

Answer:

A B

Explanation:
Ref:
https://docs.oracle.com/en/cloud/saas/project-portfolio-management/19b/oapjc/process-project-cost-transactions What's a
borrowed and lent processing method?
A method of processing cross-charge transactions that generates accounting entries to share revenue or transfer costs from
the provider organization to the receiver organization within a legal entity. An internal invoice isn' t created but costs or
revenue are shared based on the transfer price rules. This method provides a financial view of the performance of an
organization.

Question 7

While creating a new project template, you notice that a default Asset Cost Allocation method is being automatically
associated. Identify the source setup from which the default value is being inherited. (Choose the best answer.)

• A. project classification
• B. project type
• C. project unit
• D. project organization

Answer:

B

Explanation:
Ref:
https://docs.oracle.com/en/cloud/saas/project-portfolio-management/19b/oapjf/define-project.html#OAPJF2201
Asset Cost Allocation Methods
The asset cost allocation method determines how indirect or common costs incurred on a project are allocated to multiple
assets.
You can specify an asset cost allocation method to enable Oracle Fusion Project Costing to automatically allocate
unassigned asset lines and common costs across multiple assets. Unassigned asset lines typically occur when more than
one asset is assigned to an asset grouping level.
Projects and project templates inherit a default asset cost allocation method from the associated project type. You can
override the default at the project level. If you use capital events to allocate costs, then you can also override the asset cost
allocation method at the event level
Asset Cost Allocation Methods
The following table describes the available asset cost allocation methods. Method
Basis of Cost Allocation
Actual Units
Number of units defined for each asset Current Cost
Construction-in-process (CIP) cost of each asset Estimated Cost
Estimated cost of each asset Standard Unit Cost
Combination of the standard unit cost and the number of units defined for each asset Spread Evenly
Equal allocation of cost to each asset

Question 8

Your administrator creates maintenance conditions on the Maintain Project Enterprise Labor Resources page. An HCM
person is included in a condition with a process order value of 1 and, additionally, there are three other conditions, all with a
process order value of 10. Identify two correct statements about the Maintain Project Enterprise Labor Resources process as
it relates to process order values. (Choose two.)

• A. The process creates a resource by using the conditions with a process order value of 10 but does not create more than one resource for the same person even if subsequent conditions apply to the person.
• B. For the three conditions that have the same process order value of 10, the records are processed in ascending alphabetic order based on the condition name.
• C. For the three conditions that have the same process order value of 10, the records are processed in ascending numeric order based on the condition name.
• D. The process creates a resource by using the condition with a process order value of 1 but does not create more than one resource for the same person even if subsequent conditions apply to the person.

Answer:

B D

Question 9

Your customer wants a team member who is assigned to a project to be able to create and submit a forecast, but not to be
able to approve the forecast. What is the default project role that you should assign to the person in the project to meet this
requirement? (Choose the best answer.)

• A. Project Manager
• B. Project Administrator
• C. Project Application Administrator
• D. Project Accountant

Answer:

B

Explanation:
Ref:
https://docs.oracle.com/en/cloud/saas/project-portfolio-management/19b/oapjm/project-administrator-job-role.ht Project
Manager has duty role Project Forecast Approval Duty assigned but
Project Administrator has duty role Project Forecast Inquiry Duty no approval authority
Both roles have duty role Project Forecast Management Duty which enables them to Allow creation, submission, update,
and deletion of working versions of project forecasts. (Cloud _Roles_Duties.xlsx)

Question 10

You create a project schedule with a Shifts element. Identify two more elements that can be part of a project schedule.
(Choose two.)

• A. Exceptions
• B. Accounting Calendar
• C. Workday Patterns
• D. Time Off
• E. Expenditure Type

Answer:

A C

Explanation:
Reference https://docs.oracle.com/cloud/latest/projectcs_gs/FAPFM/FAPFM1192914.htm
Topic Creating Calendars for Projects and Resources: Procedure
Project Schedules are used as a base for project and resource calendars in Project Execution Management applications.
The smallest scheduling unit is a day. For example, you can define the number of hours in a day but, you can't schedule
work for a specific time of the day.

The following are the elements of a schedule: Shifts


Workday patterns Exceptions