Oracle Financial Reporting and Analysis Cloud 2017 Implementation Essentials — Question 33

Your customer wants to automatically allocate unassigned asset lines and common costs across multiple assets based on the construction-in-process cost of each asset. Identify the asset allocation method that you must use as the default method while configuring project types to meet this requirement. (Choose the best answer.)

Answer options

• A. Standard Unit Cost
• B. Actual Unit
• C. Current Cost
• D. Estimated Cost
• E. Spread Evenly

Correct answer: C

Explanation

The correct answer is C. Current Cost is used to allocate costs based on the actual expenses incurred for each asset, making it suitable for the client's request. The other options, such as Standard Unit Cost and Estimated Cost, do not reflect the current construction-in-process costs accurately, while Spread Evenly does not take into account the specific costs associated with each asset.