Select the key performance indicator (KPI) that provides a trend of the cost of an item as part of
Gross Margin Analysis
A.
Item Cost KPI
B.
Value Trends KPI
C.
Gross Margins KPI
D.
Inventory Value KPI
Explanation:
Note:
* Overhead Costs Expensed or Capitalized
On inbound transactions and inventory transfer transactions, overhead expenses can be absorbed
and capitalized into inventory value, or the absorption can be redirected to an expense account: a
credit to an absorption account and a debit to either an inventory or expense account. On
outbound transactions, overhead absorption is redirected to an expense account, and will be
included in the gross margin calculation.
For example, consider a receipt of inventory items that cost $10 each to purchase, and you would
like to absorb overhead cost of $2 each on the inbound transaction. When the item is sold, you
would like to absorb additional overhead of $3 each on the outbound transaction. The total cost of
goods sold is $15 each.
*Fusion Costing analytics include support for Gross Margin Analysis, Item Cost Trend and Item
Value trend, embedded in the Fusion Cost Accountant’s dashboard
Oracle Fusion Applications Cost Accounting and Receipt Accounting Implementation
Guide 11g, Overhead Costs Expensed or Capitalized