Cost-Based Oracle Fundamentals: Oracle Database uses a cost-based optimization (CBO) approach to determine the most efficient execution plan for SQL queries. The CBO considers various factors, including table size, index availability, and system resources, to calculate the cost of each possible query execution plan. The optimizer then selects the plan with the least cost. Key factors influencing the CBO include statistics about the data, system configuration, and available indexes. Understanding how the CBO works can significantly enhance query performance by making better use of available resources and optimizing execution strategies.