MB-920 Practice Test 10 — 10 Questions

Question 1

A retail company is implementing Dynamics 365 Finance and Operations. They need to track the financial performance of each store as a separate profit center. Which configuration should they use?

Accepted Answer

Assign financial dimensions to each store and configure the store as a profit center.. Financial dimensions in Dynamics 365 Finance and Operations allow you to segment financial data for reporting and analysis. By assigning a financial dimension to each store and configuring it as a profit center, the company can track revenue, costs, and profitability at the store level without creating separate legal entities.

Answer

Use the Budget control feature to monitor store spending.

Answer

Set up cost centers for each store.

Answer

Create a separate legal entity for each store.

Question 2

A retail company uses Dynamics 365 Commerce. They need to offer a discount on a specific product line for a limited time. Which pricing mechanism should they configure?

Accepted Answer

Trade agreements. Trade agreements in Dynamics 365 Commerce are the correct pricing mechanism for offering a limited-time discount on a specific product line. They allow you to define price reductions for a specific product or product category for a defined date range, directly controlling the discount amount and validity period. This is the standard way to create time-bound promotional pricing without altering base prices or requiring complex price group assignments.

Answer

Sales tax

Answer

Product categories

Answer

Price groups

Question 3

Refer to the exhibit. A company manufactures a finished good (FGI-100) and produces a co-product (CP-01) during production. The cost accountant notices that the cost of FGI-100 does not reflect the offset from the co-product. What should they configure?

Accepted Answer

Set up co-product cost allocation. Co-product cost allocation must be set up to distribute costs between the main item and co-products, ensuring the cost of FGI-100 reflects the offset from the co-product. Option B is incorrect because adjusting the costing sheet is for overhead allocation, not co-product cost allocation. Option C is incorrect because creating a new BOM version defines materials or production structure, not cost allocation. Option D is incorrect because defining a route version specifies operations, not cost allocation.

Answer

Adjust the costing sheet

Answer

Create a new BOM version

Answer

Define a route version

Question 4

Which THREE are components of the Dynamics 365 Supply Chain Management demand-driven planning?

Accepted Answer

Demand-driven reorder logic. Options B, C, and E are correct. Demand-driven planning includes buffer levels (C), decoupling points (E), and demand-driven reorder logic (B). Option A is incorrect because product variants are a product configuration concept, not a component of demand-driven planning. Option D is incorrect because cost accounting is a separate financial function, not part of demand-driven planning.

Answer

Product variants

Answer

Cost accounting

Question 5

A company uses Dynamics 365 Supply Chain Management and wants to automate the replenishment of items based on historical demand and predefined minimum stock levels. Which feature should they configure?

Accepted Answer

Replenishment rules. Replenishment rules in warehouse management allow automatic replenishment based on demand and min/max levels. Option A (Replenishment rules) is correct. Option B (Safety stock journal) is for manual adjustments to safety stock. Option C (Forecast scheduling) is part of master planning, not specifically warehouse replenishment. Option D (Cycle counting) is for inventory accuracy.

Answer

Safety stock journal

Answer

Forecast scheduling

Answer

Cycle counting

Question 6

A company uses Dynamics 365 Supply Chain Management and wants to track the environmental impact of their products, such as carbon footprint, across the supply chain. Which capability should they use?

Accepted Answer

Sustainability. The Sustainability module in Dynamics 365 Supply Chain Management provides carbon footprint tracking and sustainability analytics. Option A (Demand planning) is for supply chain planning, not sustainability. Option C (Product feedback) is for gathering product insights, not environmental impact. Option D (Asset management) is for maintenance and lifecycle of assets, not sustainability tracking.

Answer

Demand planning

Answer

Product feedback

Answer

Asset management

Question 7

Which TWO are benefits of using Dynamics 365 Supply Chain Management with IoT integration?

Accepted Answer

Real-time asset tracking. IoT integration enables real-time asset tracking (Option C) and predictive maintenance on equipment (Option E). Option A (real-time customer credit check) is typically handled by Finance or Credit Management modules, not IoT. Option B (vendor negotiation) is a procurement activity unrelated to IoT. Option D (automated financial closing) is a finance process, not an IoT benefit.

Answer

Real-time customer credit check

Answer

Vendor negotiation

Answer

Automated financial closing

Question 8

A distribution company uses Dynamics 365 Supply Chain Management and needs to optimize warehouse operations by grouping items that are frequently shipped together. Which warehouse concept should they apply?

Accepted Answer

Wave processing. Wave processing is the correct answer because it allows grouping of shipments into waves based on criteria such as common customer, route, or delivery date, which optimizes picking and shipping in warehouse operations. Cross-docking is a process where inbound goods are directly transferred to outbound trucks without storage, not for grouping frequently shipped items. Cluster picking is a picking method where items for multiple orders are picked in a single pass, but it does not involve grouping items based on being frequently shipped together. Kanban is a lean manufacturing method used for signaling replenishment, not for warehouse grouping.

Answer

Cross-docking

Answer

Cluster picking

Answer

Kanban

Question 9

Which TWO account types are commonly used in the chart of accounts in Dynamics 365 Finance? (Choose two.)

Accepted Answer

Profit and loss accounts.. Options C and D are correct. Profit and loss accounts and balance sheet accounts are the two main account types in a standard chart of accounts for Dynamics 365 Finance. Option A is incorrect because statistical accounts are used for non-financial data, not as primary account types. Option B is incorrect because budget accounts are separate from the chart of accounts and used for budgeting purposes. Option E is incorrect because reporting accounts are not a standard account type in the chart of accounts.

Answer

Statistical accounts.

Answer

Budget accounts.

Answer

Reporting accounts.

Question 10

Refer to the exhibit. A Dynamics 365 Finance system has a tax code configured as shown. A sales invoice line item has a unit price of 100.00 (excluding tax) and the tax code applies. What is the total invoice line amount including tax?

Accepted Answer

119.00. The tax code with a rate of 19% and calculation method 'WholeAmount' computes tax on the line amount and adds it: tax = 100 * 0.19 = 19, total = 119. Option A (110.00) implies a 10% tax rate, not 19%. Option B (138.00) implies a 38% tax rate, not 19%. Option C (100.00) excludes tax entirely.

Answer

110.00

Answer

138.00

Answer

100.00