Oracle Exam 1Z0-1075-24 Topic 1 Question 3 Discussion

When configuring machines that will be used in production operations and will incur costs associated with work orders, the correct setup for these machines involves:

Setting up the machines as a 'Resource' in the cost element set ABC: This allows the machines to be directly associated with the work orders for which they are used, ensuring that their costs are appropriately tracked and charged to the work order. Resources include equipment, labor, and other direct costs involved in production.

Incorrect options:

'Overhead' (B, D): Overhead costs typically represent indirect costs, not the direct usage of machines in production.

Cost Element Set Common (A): Since the plant uses a separate cost element set (ABC), the machines must be assigned to this specific set, not the Common cost element set.