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Oracle Fusion HCM: Compensation 2014 Essentials Sample Questions:

1. A compensation manager of a corporation is setting up a new salary basis for the employees. Which statement is true about payroll elements set up for a salary basis?

A) Recurring elements can be linked to multiple salary bases only if they are classified as earnings elements, and they need not be configured to allow multiple entries in the same period.
B) Multiple payroll elements can be attached a salary basis.
C) Payroll elements of any classification type can be attached to a salary basis.
D) Recurring elements can be linked to multiple salary bases only if they are classified as earnings elements and configured to allow multiple entries in the same period.

2. Identify the correct option regarding the Payroll element details in the compensation history setup.

A) Any payroll element can be added and all other details are auto-populated including the history category.
B) Any payroll element can be added and the input value of the element must be selected. All other details are auto-populated including the history category.
C) Any payroll element can be added and the input value of the element must be selected. All other details are auto-populated excluding the history category.
D) Any payroll element can be added and all other details are auto-populated excluding the history category.

3. As compensation manager, you are creating a Salary compensation item to define a total compensation statement. Which two statements are correct about compensation items?

A) Compensation items cannot be used across statement definitions.
B) Compensation items are added to a compensation category to include them in statements.
C) Compensation items need not be mapped to the specific source from which the compensation information is retrieved.
D) Compensation items can be added to statement definitions directly.
E) Compensation items are the foundation upon which the Compensation Statement is built.

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 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.
B) 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.
C) 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.
D) 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.

5. While administering compensation for the workforce, Manager X accidentally approves a lower manager's. Which three statements will be true in this case?

A) The lower-level manager can still make changes in the worksheet and resubmit it for approval.
B) The worksheet goes to next level for approval.
C) The lower-level manager's access level is changed to "Approved."
D) The lower-level manager can withdraw the submission and reprocess the compensation allocation.

Solutions: