Which two statements are true when defining a source and target for allocation rule sets?

The selection of either level 0 members or parents when defining a source and target for allocation rule sets is based on the flexibility provided within the allocation framework of the Profitability and Cost Management Cloud. Level 0 members represent the most specific detail in a hierarchy, allowing for precise allocation. However, the option to select parent members means that users can also apply rules at a higher aggregation level, which can be beneficial for broader evaluations or when the granularity of level 0 members is unnecessary.

This versatility in choosing between level 0 members and their parent alternatives supports more strategic and tailored allocation designs. It allows organizations to adapt their allocation strategies to suit different analysis needs and reporting requirements while considering the hierarchy's structure.

The other statements suggest constraints that do not reflect the true capabilities of the tool. For instance, only permitting level 0 selections would limit flexibility and usability. Similarly, the idea that only the highest-ranking member can be selected disregards the hierarchy's capacity to allow varied member selections across different levels. Lastly, suggesting performance impacts based on the selection of members does not accurately depict the functional architecture and optimization strategies available in the system.