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Oracle Fusion HCM: Compensation 2014 Essentials Sample Questions:

1. A corporation is implementing Oracle Fusion Compensation Management and must set up Compensation history. Identify the three correct options regarding the salary component.

A) The growth rate shown in the details shows both cumulative and average annual salary growth rates.
B) The base rate shown in the previous years is the pay rate on 31 December of each year.
C) The Base rate shown in the salary section is the most recent pay rate.
D) The Base rate shown in the salary section is the average of the pay rate for the entire year.

2. Identify the three choices when configuring approvals.

A) Alternative approve hierarchy
B) Approve mode
C) Auto approval
D) Submit mode

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

4. A corporation is implementing Oracle Fusion Compensation Management and must set up salary bases. Employees are assigned different grades within the organization and the salaries are dependent on the grades.
What is the correct way to set up the salary bases?

A) Set up different salary bases for different grades with the same payroll element. The frequency of both salary basis and the grade rate should match.
B) Set up different salary bases for different grades and different payroll elements, because the payroll element can be attached to only one salary basis. The frequency of both salary basis and grade rate need not match.
C) Set up different salary bases for different grades with the same payroll element. The frequency
of both salary basis and grade rate need not match.
D) Set up different salary bases for different grades and different payroll elements, because the payroll element can be attached to only one salary basis. The frequency of both salary basis and grade rate should match.

5. Your client is a consumer goods wholesaler. The client's organization has five departments.
While performing compensation budgeting activity, the client has a policy that the departments that have exceeded their sales targets receive an additional budget to reward the employees to that department. In the current year, only the Electronics department has exceeded its sales target.
How would the compensation manager allocate the extra budget to the manager of the Electronics Department?

A) Request excess budget allocation from the manager above him.
B) Initiate budgets automatically by using the Start Compensation Cycle process.
C) Create a separate compensation plan for Electronics department employees and publish the extra budget to the manager of the department.
D) Publish the original budget to all managers, followed by publishing the extra budget to only the manager of the Electronics department.

Solutions: