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

2. A manager publishes budgets as amounts to the managers reporting to him. The following table shows the allocations made to each direct report (managers) and the total salaries of the employees in their chain.

Now, one of Manager 2's employees with eligible salary of $ 100,000 is reassigned to Manager 3. What will be the impact on Budget Percentage?

A) Allocated budget will not change. Budget percentage of Manager 3 will increase to 12.5% and Manager 2 will decrease to 8%.
B) Budget allocated for the employee will be released back to the manager for reallocation. Budget percentage will remain unchanged.
C) No Impact. The budget allocated to the employee will automatically be allocated to Manager 3. Budget percentage will remain as 10.
D) Allocated budget will not change. Budget percentage of Manager 2 will increase to 12.5% and Manager 3 will decrease to 8%.

3. When upper-level managers change the plan access of one or more lower-/eve/ managers, they receive a notification informing them about the change in access. Which option do the/ receive to act on the notification?

A) Reject
B) Accept
C) Dismiss
D) Reply

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) Publish the original budget to all managers, followed by publishing the extra budget to only the manager of the Electronics department.
B) Initiate budgets automatically by using the Start Compensation Cycle process.
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. Per your client 5 policy on eligibility for a compensation revision cycle, employees who are in a notice period are not eligible. Manager X is currently in a notice period, but his direct reports are still eligible compensation cycle. You observe that the system allows Manager X to administer compensation for his direct reports.
You research this and find out that Manager X is still allowed to carry out the compensation allocation because his Eligibility Status is_____________.

A) Provisional
B) Restricted
C) Ineligible
D) Limited
E) Eligible

Solutions: