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Oracle Fusion HCM: Compensation 2014 Essentials Sample Questions:

1. Which two tasks are true about components in worksheet configurations?

A) You can create up to five components to represent the different types of compensation that you want to award within a plan.
B) Plans must have at least one component if awarding compensation.
C) Each component has to be of a separate type, such as salary or bonus.
D) There is the flexibility to add any number of components within a compensation plan.

2. Oracle Fusion Compensation has nine predefined salary components. Your client has a requirement that allow a salary adjustment based on the number of dependants the employee has, and this allowance must be mapped to a separate component. Because this allowance cannot have a logical mapping with any of the predefined components, you decide to create a new salary component called "Family Allowance".
Which option would you use to achieve this?

A) It is not possible to achieve this, because only the delivered salary component can be used
B) The Salary Component Lookup
C) The Configure Compensation Component task Manager plans
D) The Compensation Models

3. 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 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.
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 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.

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

5. While implementing Oracle Fusion Compensation Management for client XYZ, you are grouping compensation items and categories for displaying them together. Therefore, when planning how to group compensation items and categories, you must consider which three options?

A) Statement definitions
B) Contribution Type and Unit of Measure
C) Level of detail
D) Category Detail
E) Compensation Items
F) Category Type

Solutions: