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Oracle Fusion HCM: Compensation 2014 Essentials Sample Questions:

1. ABC Company's compensation has an itemized structure. The company wants to increase the Cost of Living allowance of the employees living in the New Jersey area by 3% to compensate for the increased living costs. Which feature of Oracle Fusion Compensation can be used to achieve this?

A) Action and Action Reasons
B) Budget Pools
C) Salary Component
D) Plan Access
E) Plan Eligibility

2. 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 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.
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 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.
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.

3. A corporation is implementing Oracle Fusion Compensation Management. Different currencies are set at the Legislative Data Group level, the Organization payment level, the Bank account level, and the payroll element level.
The currency shown while configuring salary basis comes from which level?

A) From the Bank account level
B) From the input value of the payroll element
C) From the organization payment level, because the compensation is finally paid through this
D) From the Legislative Data Group level, because that is the highestlevelin the hierarchy

4. Your client's compensation plan for employees includes a component that is based on years of service in the organization. If a person completes 10 years in the company, he or she will be eligible for a seniority component and the associated fixed salary amount. What type of eligibility profile you would need to create in order to track work experience of people?

A) User-defined-criteria-based eligibility profile using hire date
B) Employment-based-eligibility-criteria using length of service
C) Employment-based eligibility criteria using hire date
D) Derived-factor-based eligibility criteria using length of service

5. What happens when you define Workforce Compensation Plan components but the employee to whom the compensation change is being administered does not have ant component in this or her salary?

A) The first component is automatically mapped to the salary and amount associated with this component is posted as a salary adjustment to the employee record.
B) The component adjustment is not posted as a salary adjustment to the employee's record. While designing the compensation plan, it has to be kept in mind that plan components must have a direct mapping with the employee's salary components.
C) The sum of all components identified to be posted as single salary adjustment amount to the employee salary record.

Solutions: