How do adaptive cursor sharing and SQL Plan Management interact?

We've received a lot of questions about how adaptive cursor sharing (ACS) and SQL plan management (SPM) interact.  We discussed this briefly in one of the original SPM posts, but in this post, we'll explain the concepts of how the two features interact in more details, and show an example. 

The simplest way to reason about the interaction is to remember that they are responsible for two different tasks.  ACS controls whether or not a child cursor is shared on a particular execution.  For each execution of the query, ACS considers the current bind values and decides if an existing child cursor can be shared or if the optimizer should be given the chance to find a better plan for the current bind values.  SPM controls which plans the optimizer may choose.  If a child cursor is bind-aware, the decision to share or not is made irrespective of whether the query is controlled by SPM.  But once the query and its current bind values are sent to the optimizer for optimization, SPM constrains the optimizer's choice of plans, without regard to whether this query is being optimized due to ACS.

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