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Oracle Fusion HCM: Compensation 2014 Essentials Sample Questions:

1. The Budget Pool Storage Method selected is "Amount". One of the line managers in the organization has twenty employees reporting to him. One of the employees leaves the organization during the compensation cycle.
What will be the effect on the budget allocated to the Line Manager?

A) The published budget is always a percentage of the total budget pool.
B) The published budgets change when a manager's total eligible salary changes, such as when workers eligibility changes.
C) The published amount stay with the manager when workers are reassigned or their eligibility changes.
D) The published budget change when a manager's total eligible salary changes, such as when workers are reassigned.

2. The manager administering compensation has the option to create budget models to be used to allocate compensation.
Which four options regarding compensation modeling are correct?

A) Managers can use a model created by compensation professionals.
B) Managers cannot share a model created by them.
C) Access of a model is limited only to the creator of the model.
D) Modeling enables managers to automatically allocate compensation to employees who meet certain criteria.
E) Managers can create their own models and use them.
F) A model can be shared with the direct reports of the creator.

3. After creating a compensation plan and eligibility profiles, you are currently modeling the budget allocation. The HR manager informs you that one employee under Supervisor 1 has been seconded to a different country on a temporary basis with no changes to his employment terms and that this employee must be removed from the budgeting exercise.
What is the correct way of achieving this?

A) Use the Edit button in the Employee's included area while creating a model to exclude the employee.
B) Modify the eligibility profile by using a formula to exclude the employee from appearing under Supervisor 1. After the compensation cycle is completed, revert the eligibility profile to its original form, if needed.
C) Advise Supervisor 1 not to allocate any compensation for the employee. In the meanwhile, manually adjust the budget allocated to Supervisor 1 to exclude the employee's amount.
D) Use the Include check box next to the employee's name in the Budget worksheet to exclude the employee from the cycle.

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

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

Solutions: