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1Z0-1074 Oracle Cost Management Cloud 2022 Implementation Professional Practice Exam
Exam Number: 4818 | Last updated April 19, 2026 | 700+ questions across 4 vendor-aligned objectives
The 1Z0-1074 Oracle Cost Management Cloud 2022 Implementation Professional exam is written for finance and supply chain consultants who deploy Oracle Fusion Cost Management. Candidates validate command of cost organizations, cost books, valuation structures, receipt accounting, landed cost, and the Subledger Accounting rules that post inventory and manufacturing results to the General Ledger.
The heaviest content is Cost Accounting and Inventory Valuation (roughly 35%), covering cost organizations, cost books, valuation units, perpetual average, standard, and actual costing, and the month-end cost processor runs. Receipt Accounting contributes another 20% with accrual reconciliation and the clearing logic between receiving and payables.
Landed Cost and Standard Cost Updates sit near 20% and drill into charge names, estimated versus actual charges, and cost roll-up flows. Subledger Accounting, Reporting, and Period Close rounds out the remaining weight with journal line rules, account rules, OTBI costing content, and the month-end checklist that ties Cost Management to the GL.
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Question #1 - Cost Accounting and Inventory Valuation
A cost accountant at a consumer-goods manufacturer wants perpetual average costing so that each receipt at a different price automatically adjusts the weighted-average unit cost, with variance posted as inventory is issued.
Which Fusion Cost Management configuration fits?
A) A cost book with perpetual average costing method assigned to the inventory org.
B) No costing method — raw unit prices carried forward.
C) Standard costing with annual cost roll-up only.
D) Actual costing evaluated only at year-end.
Show solution
Correct answers: A – Explanation:
Perpetual average costing re-averages the unit cost at each receipt and flows variances through issues, exactly as described. Option C uses standard, not average. Option D delays cost updates. Option B is not a supported model. Source: Check Source
Question #2 - Cost Accounting and Inventory Valuation
A cost manager running standard costing wants all purchase price variances (PPVs) posted to a specific GL account and isolated from production variances.
Which Fusion Cost Management feature ensures separate accounts for PPV vs. production variance?
A) A single variance account holding everything.
B) Subledger Accounting rules that derive different GL accounts by journal line type such as PPV vs. production variance.
C) Manual reclassification journals at month-end.
D) A descriptive flexfield to note the variance type.
Show solution
Correct answers: B – Explanation:
Subledger Accounting rules tied to journal line types such as PPV and production variance derive different GL accounts automatically. Option A conflates variance categories. Option C is manual and error-prone. Option D does not post. Source: Check Source
Question #3 - Receipt Accounting
A finance controller needs to reconcile the receiving inspection balance at month-end. She wants Fusion Receipt Accounting to accrue at receipt and clear when the Payables invoice matches.
Which Fusion pattern matches this accrual and clearing behavior?
A) No accrual; expense on receipt.
B) Accrual only at invoice entry, not at receipt.
C) Receipt accrual on receipt transfer to Cost Management, with clearing on Payables three-way match.
D) Manual accrual journals at month-end.
Show solution
Correct answers: C – Explanation:
Fusion Receipt Accounting accrues at receipt (via transfers from Receiving) and clears the accrual when Payables completes the three-way match. Option B delays accrual. Option D is manual. Option A skips matching entirely. Source: Check Source
Question #4 - Landed Cost and Standard Cost Updates
A procurement analyst is importing electronic components from overseas. Freight, duty, and insurance must add to the inventory cost when the shipment is received, but the actual freight invoice arrives 3 weeks later.
Which Fusion Cost Management feature supports estimated charges at receipt and true-up when actuals arrive?
A) Ignoring freight in the unit cost.
B) Manual spreadsheet calculations each month.
C) Waiting until the freight invoice before valuing inventory.
D) Landed cost with estimated charges at receipt and actual-charge reconciliation when invoices arrive.
Show solution
Correct answers: D – Explanation:
Fusion Cost Management’s landed cost capability supports estimated charges that update inventory cost at receipt, then reconciles to actuals when invoices arrive. Option C delays valuation. Option B exits the system. Option A understates cost. Source: Check Source
Question #5 - Cost Accounting and Inventory Valuation
A cost admin at a multi-plant company has two cost organizations: US Manufacturing (standard costing) and EMEA Manufacturing (perpetual average). She wants each cost organization to report independently but both to roll up into the same corporate GL.
Which Fusion Cost Management construct supports this dual costing method across plants?
A) Separate cost books per cost organization with independent costing methods, both posting to the same corporate GL.
B) Manual currency-only conversion at period end.
C) A single global costing method across all plants.
D) Ignoring the US plants entirely in costing.
Show solution
Correct answers: A – Explanation:
Cost books per cost organization let each plant run its own costing method while both post to the same GL, which is exactly the described flexibility. Option C forces one method. Option B does not solve costing method differences. Option D skips requirements. Source: Check Source
Question #6 - Cost Accounting and Inventory Valuation
A cost accountant wants the month-end cost processor to finalize all open transactions, calculate inventory value, and post subledger journals in sequence.
Which Fusion Cost Management process chain produces month-end valuation and postings?
A) Emailing the subledger team with month-end results.
B) Run Cost Accounting processor, Create Cost Accounting Distributions, Create Accounting, and Post Subledger Journal Entries.
C) Direct journal entries to GL bypassing Cost Management.
D) A manual spreadsheet reconciliation only.
Show solution
Correct answers: B – Explanation:
The standard Cost Management close chain is: process costs, create distributions, create accounting, post subledger journals to GL — the engineered path. Option D exits the system. Option A is informal. Option C breaks SLA integrity. Source: Check Source
Question #7 - Receipt Accounting
A reconciliation specialist sees an aged accrual balance from 9 months ago that cannot be cleared because the matching invoice never arrived. She wants to write off this specific accrual without affecting active accruals.
Which Fusion Receipt Accounting feature supports targeted accrual write-off?
A) Issuing a new PO to cover the stale accrual.
B) Deleting the original receipt.
C) Accrual reconciliation report with write-off actions on specific aged accruals.
D) A global journal reversing all receipts.
Show solution
Correct answers: C – Explanation:
The accrual reconciliation report supports targeted write-off of aged, orphaned accruals without touching active balances. Option B destroys history. Option A creates a real liability. Option D is indiscriminate. Source: Check Source
Question #8 - Landed Cost and Standard Cost Updates
A cost manager is running a standard cost update for the new fiscal year. She wants the update to roll to all items in a specific category and generate revaluation journals for on-hand inventory.
Which Fusion process handles standard cost update plus revaluation?
A) A one-off adjustment journal per on-hand quantity.
B) A manual update on each item one at a time.
C) A spreadsheet import with no revaluation.
D) Standard Cost Update process with scope by category and on-hand revaluation journal generation.
Show solution
Correct answers: D – Explanation:
The Standard Cost Update process applies a new cost by scope and generates the revaluation journal automatically. Option B is toil. Option C misses revaluation. Option A is manual. Source: Check Source
Question #9 - Subledger Accounting, Reporting, and Period Close
A cost analyst wants OTBI analyses showing inventory valuation, variance by cause, and gross margin by item for last quarter.
Which Fusion layer supports these analyses?
A) OTBI analyses on the Cost Management subject areas.
B) A spreadsheet emailed daily.
C) Manual queries against the transaction tables.
D) A BI Publisher report only, with no drill.
Show solution
Correct answers: A – Explanation:
OTBI with the Cost Management subject areas exposes valuation, variance, and margin dimensions with drill-through for analysis. Option B is lagging. Option C is unsupported. Option D lacks drill capability. Source: Check Source
Question #10 - Subledger Accounting, Reporting, and Period Close
A close coordinator needs to prevent the Cost Management period from closing while any inventory transactions are still in error and not yet accounted.
Which Fusion feature enforces this cost close gate?
A) Emailing the team a reminder.
B) Ignoring the error and closing.
C) Period-close validation in Cost Management that prevents closure when unaccounted transactions exist.
D) Closing the period regardless and fixing errors later.
Show solution
Correct answers: C – Explanation:
Cost Management period close validation blocks closure if transactions remain unaccounted, enforcing a clean close. Option D creates prior-period issues. Option A is informal. Option B causes misstatements. Source: Check Source
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Exam mode & learn mode · Score by objective · Updated April 19, 2026
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What the 1Z0 1074 Cost Mgmt Pro exam measures
- Cost accounting and inventory valuation (35%) — configure cost organizations, cost books, valuation units, and costing methods, and run the cost processor for period-end valuation.
- Receipt accounting (20%) — post purchase receipts to receiving inspection, reconcile accruals, and clear balances through Payables matching.
- Landed cost and standard cost updates (20%) — author landed cost charges, compare estimated and actual charges, and orchestrate standard cost roll-ups.
- Subledger Accounting, reporting, and period close (25%) — tune journal line and account rules, deliver OTBI costing content, and drive the close checklist that ties Cost Management to the General Ledger.
How to prepare for this exam
- Review the official 1Z0-1074 exam page to confirm the current objectives.
- Complete the Oracle University Oracle Cost Management Cloud Implementation learning path on MyLearn.
- Provision a Fusion SCM test pod, configure a cost organization with two cost books, and run the receipt accounting and cost processor flows end to end.
- Apply the skills on real work: shadow a period close, rebuild a Subledger Accounting rule that is posting to the wrong account, or author a landed-cost template for a new import lane.
- Master one objective at a time, starting with cost accounting and inventory valuation since it carries the most weight.
- Run PowerKram learn mode to see feedback after every question with sourced links back to Oracle documentation.
- Finish with PowerKram exam mode across all objectives until you clear the threshold three times in a row.
Career paths and salary outlook
Cost Management Cloud skills command premium rates on Fusion Financials and SCM projects:
- Oracle Cost Management Consultant — $115,000–$160,000 (Glassdoor).
- Cost Accounting Systems Lead — $95,000–$135,000 (PayScale).
- Supply Chain Finance Solution Architect — $135,000–$185,000 (U.S. Bureau of Labor Statistics).
Official resources
Follow the Oracle Cost Management Cloud Implementation Professional Learning Path on Oracle MyLearn. Supplement with the Oracle Fusion SCM documentation library.