5 responses to Oracle Apps Costing Interview Questions

1. 

   Sachin K said on July 10, 2011

   Kindly Verify my answers for the above Costing Questions and reply me your Valuable Feedback.

   1] Different Costing Methods Oracle Support :

   a] STD. Costing, b] Average Costing, 3] FIFO, 4] LIFO Costing etc.
   2] STD.Costing is a method of Costing method which uses Predetermined costs at the time of calculation of Inventory as well as Charging all Resources, Material and Overheads, Job Close etc.
   Variance is calculated as the difference between standard Costs and actual Costs.
2. 

   Sachin K said on July 11, 2011

   Question nO.3]Average Costing :- This is a Costing Method in which the unit cost of an item is the average value of all receipts of that item to inventory, on a per unit basis. Each receipt of material to inventory updates the unit cost of the item received. Issues from inventory use the current average
   cost as the unit cost.
   By using Oracle Cost Management’s average costing method,we can perpetually value inventory at an average cost, weighted by quantity (inventory value = average unit cost* quantity).Average Costs are Maintained seperately for every Organization and cannot be shared across the Organization.

   4] Difference between STD. and Average Costing are,
   STD. Costing :- 1]Item cost is a Standard Value irrespective of Inventory receipt value.
   2] Unit Cost of Item is not updated upon Receipt of Item. 3] Determine profit margin based on projected costs. 4] Available for both Discrete and repetitive production
   Average Costing :- 1] Item cost is average value of all receipts of that item to inventory, on a per unit basis. 2]Each receipt of material to inventory updates Item unit cost. 3] Value inventory and transact at a moving average cost. 4] Not available for repetitive production.

   Question 5 ] Cost type is a set of costs uniquely Identified by name.Two cost types there
   i] Frozen ii] Average.
   But any Business can define multiple Simulations. But each cost type must have its own set of controls.

   Question 6] Frozen Cost :- This is Valid only for the Organizations use STD. Costing method and not for the Average Costing.This is used for Valuation of Transactions and Inventory Balances.
3. 

   Sachin K said on July 11, 2011

   7] Costing Elements are a] Material, b] Material Overhead, c] Resources, 4] Overhead, 5] Outside Processing Item. (Resource which buy from Outside Vendor]
   8] Yes, Oracle Supports Activity Based Costing.
   9] Yes we can Copy Costs.
   10] Mass Edit Provision is also available in Oracle Apps
4. 

   armela said on October 17, 2011

   I want to record FIFO costing for my organization. What costing method/rate should I use? Standard or Average?
5. 

   oracleguru said on October 17, 2011

   Hi Armela – Oracle supports FIFO / LIFO costing as well apart from Standard and Average. So you can select FIFO as your primary costing method for your organization.