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Oracle Fusion HCM: Compensation 2014 Essentials Sample Questions:

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

2. Identify the three correct statements for an alternate approver hierarchy.

A) You can create multiple approvers for the same manager.
B) The alternate approver must be a part of the regular plan hierarchy.
C) The highest Approval sequence is the final approver.
D) By defining alternate approvers, you replace the standard approval hierarchy for a manager with a new set or sequence of approvers.

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

4. Which two methods can be used by the Compensation Administrator to publish budgets?

A) Publish budgets automatically by running the Build Model process.
B) Publish budgets manually.
C) Copy budget amounts from a previous cycle.
D) Use a model to distribute budgets.

5. 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 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.
D) 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.

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