Oracle Exam 1Z0-1077-23 Topic 4 Question 5 Discussion

A is correct because cost method is the way of valuing inventory and cost of goods sold. Cost method can be defined at different levels of granularity, such as item category, item, or lot. This allows for more flexibility and accuracy in cost accounting1

B is incorrect because a cost organization must have a primary cost book associated with the primary ledger. A cost book is a set of cost accounting policies and valuation structures that determine how inventory transactions are accounted for. A cost organization can have multiple cost books, but one of them must be primary2

C is correct because Supply Chain Orchestration is the application that coordinates and executes the fulfillment of sales orders across multiple sources and systems. Supply Chain Orchestration automatically selects the appropriate orchestration process based on user-defined subledger accounting rules when a supply creation is initiated. Subledger accounting rules define how transactions are accounted for in the general ledger3

D is correct because Landed Cost Management is the application that enables organizations to capture, track, and allocate the actual costs associated with acquiring items from suppliers. Landed cost includes not only the purchase price, but also other charges such as freight, insurance, taxes, and duties. Landed Cost Management gives organizations financial visibility into their extended supply chain costs and helps them optimize their sourcing and pricing decisions.

E is incorrect because Receipt Accounting is not the application that performs the accrual accounting for all types of receipts. Receipt Accounting is the application that performs the accrual accounting for purchase order receipts, return to supplier transactions, and inventory adjustments. Other types of receipts, such as sales order receipts, are accounted for by other applications, such as Receivables.

1: Cost Methods 2: Cost Organizations and Cost Books 3: Supply Chain Orchestration : Landed Cost Management : Receipt Accounting