Identify two statements that are true about the cost-organization relationship.

Question

Options

• ACosting Item Validation Organization can only be Item Master Organization of the underlying
• BOnly Inventory organizations belonging to different Item Master Organizations can be part of a
• CCosting Item Validation Organization is used to default the Unit of Measure for costing
• DThe inventory organizations that are assigned to a cost organization must all belong to the same

Explanation

This question is from Oracle Fusion Cost Management, covering how Cost Organizations relate to inventory organizations and item validation.

C and D are the two correct statements.

The Costing Item Validation Organization (CIVO) serves as the reference point for defaulting the Unit of Measure (UOM) on costing transactions (C is true). Additionally, all inventory organizations assigned to a single cost organization must belong to the same Item Master Organization - this is a fundamental structural rule in Oracle Cost Management (D is true).

Why the distractors are wrong:

• A is false because the CIVO does not have to be the Item Master Organization itself - it only needs to be an inventory organization within that item master's scope.
• B is the exact opposite of the rule - inventory organizations from different Item Master Organizations cannot be grouped into the same cost organization.

Memory tip: Think of a cost organization as a "family" - all member inventory organizations must share the same "family name" (Item Master Organization), and the CIVO is the "family spokesperson" that sets the unit of measure standard. One family, one master, one UOM reference.

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