Option 1: Incorrect. Direct extraction from source systems using SQL queries is not recommended as it can be complex, time- consuming, and prone to errors. Option 2: Correct. Extraction using Oracle Data Integrator (ODI) is recommended for data extraction from source systems. ODI provides a robust and efficient way to extract data from various sources, transform it, and load it into Oracle Profitability and Cost Management Cloud Service. Option 3: Incorrect. Extraction using Oracle Financials Cloud APIs is not recommended as it may not provide all the necessary data required for profitability and cost analysis. Option 4: Incorrect. Extraction using Oracle E-Business Suite (EBS) interfaces is not recommended as it may not be suitable for non- Oracle source systems and may not provide all the necessary data required for profitability and cost analysis.

Option 1: Incorrect: Running an allocation is not used for importing data from external sources. An import process is used for this purpose. Option 2: Incorrect: COGS is a financial accounting concept that typically does not require allocation. Cost allocation is used to distribute indirect and joint costs, not COGS. Option 3: Correct: One of the primary purposes of an allocation is to distribute costs and revenues among different business units or accounts. This helps organizations to determine the profitability of different products, services, and business units. Option 4: Incorrect: Running an allocation is not used to create dashboards and reports. Those functionalities are usually part of the reporting and analytics components of the solution.

Option 1: Correct: Activity-based costing in Oracle Profitability and Cost Management Cloud Service allows users to allocate costs for different types of activities. Option 2: Incorrect: Driver-based costing in Oracle Profitability and Cost Management Cloud Service is not related to allocating costs for different types of activities. Option 3: Incorrect: Direct costing in Oracle Profitability and Cost Management Cloud Service is not related to allocating costs for different types of activities. Option 4: Incorrect: Profitability analysis in Oracle Profitability and Cost Management Cloud Service is not related to allocating costs for different types of activities.

Option 1: Incorrect. Cost Accounting in Oracle Profitability and Cost Management Cloud Service focuses on tracking costs and analyzing profitability. It does not allow users to define cost drivers and calculate costs based on specific allocation rules. Option 2: Incorrect. Workforce Planning in Oracle Profitability and Cost Management Cloud Service is used for planning and managing workforce-related expenses, such as headcount and compensation. It does not allow users to define cost drivers and calculate costs based on specific allocation rules. Option 3: Correct. Driver-Based Profitability in Oracle Profitability and Cost Management Cloud Service allows users to define cost drivers and calculate costs based on specific allocation rules. This feature helps organizations understand the impact of changing business drivers on profitability. Option 4: Incorrect. Financial Consolidation and Close in Oracle Profitability and Cost Management Cloud Service focuses on consolidating financial data and performing the close process. It does not allow users to define cost drivers and calculate costs based on specific allocation rules.

Option 1: The correct answer is Profitability Analysis. Profitability Analysis allows you to analyze product profitability by calculating and reporting on the costs and revenues associated with each product or service. Option 2: Option Cost Allocation is incorrect because Cost Allocation allows you to allocate the costs associated with various activities to products or services, but does not specifically identify unprofitable products or services. Option 3: Option Cost Rates is incorrect because Cost Rates allows you to define and manage the rates used to calculate the costs associated with activities and resources, but does not specifically identify unprofitable products or services. Option 4: Option Profitability Drivers is incorrect because Profitability Drivers allows you to define the drivers that determine the costs and revenues associated with each product or service, but does not specifically identify unprofitable products or services.