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Oracle Fusion HCM: Compensation 2014 Essentials Sample Questions:

1. As an implementation consultant, you have defined a total compensation statement. You have defined three compensation items (a new hire bonus, a profit sharing bonus, and a quarterly bonus), which are attached to the bonus category. You no longer need the quarterly bonus item but you are unable to delete it.
Which statement is true for the given scenario?

A) More than one administrator might be using the item and, therefore, it cannot be deleted.
B) The item cannot be deleted, because it is attached to a category.
C) Before deleting the item, you must configure a zero value behavior for the item.
D) The above scenario does not stand true as the item can be deleted.

2. Your client wants you to create a single Compensation Change statement that includes compensation awarded for multiple plans. What would you, as an implementation consultant, advise your client?

A) Create a Compensation Statement Plan with cross-references to compensation awarded in each plan.
B) This is possible only in the on-premises model using customization and is not possible inan SaaS instance. Therefore, you would respond accordingly to the client.
C) Create a custom data model that can pull compensation awarded from different plans and display the data using a BI publisher layout.
D) Create a separate Change statement template for this purpose and associate it with the Statement group for which this is required.

3. Which three statements are true regarding Plan Cycles?

A) You can display a target amount or custom score from a previous plan cycle In the current plan cycle.
B) All active plans are available to be cross-referenced, even plans with no started cycles.
C) Active plans are available to be cross-referenced, except plans with no started cycles.
D) You can reference a plan within itself to display values from a previous plan cycle in a subsequent cycle.
E) You cannot display a target amount or custom score from a previous plan cycle in the current plan cycle.

4. A corporation is implementing Oracle Fusion Compensation Management and needs to set up the
following for all employees:
-Salary paid based on the grades of employees.
-Car allowance paid based on the department and position
-Spot bonus paid based on a committee's decision.
Identify the correct option for the setup.

A) Set up one individual compensation plan with all three options. Add the required payroll elements and add restriction based on eligibility profiles and plan access.
B) Set up Salary and the spot bonus as two salary bases, because there are no eligibility restrictions. Set up the car allowance as an individual compensation plan- Add the required payroll elements and add eligibility profiles for the car allowance for specific departments and positions.
C) Set up a salary basis for "Salary" and associate a grade rate matrix to it, and add a car allowance and spot bonus as components for the salary basis along with Salary. Attach the required payroll elements to the salary. Have salary validations to restrict access and payment for specific departments and positions.
D) Set up a salary basis for "Salary" and associate a grade rate matrix and the payroll element to it. Set up individual compensation plans for the car allowance and spot bonus, and restrict the access to line manager and HR specialist respectively. Additionally, add an eligibility profile to the car allowance to restrict it to specific departments and positions.

5. Employee X was hired on 5 March 2014 as a Web Designer and was reporting to Manager Y.
On 10 September 2014, this employee was transferred to Manager Z to work as an Online Campaign designer. The company where Employee X works is doing a compensation cycle for the current year starting 1October 2014. The employee record set up in the plan setting is "Employment terms," while the Legal
Employer of Employee X uses a two-tier model.
On which manager's worksheet does Employee X appear?

A) Employee X does not appear on any manager's sheet, because he will not be evaluated by the compensation plan.
B) Manager Y, because this is the original manager of Employee X
C) Manager Z, because this is the current manager to whom Employee X is reporting
D) Both Manager Y and Manager Z, because he has worked under both of them during the current cycle

Solutions: