MB-920 Practice Test 16 — 15 Questions

Question 1

Which THREE of the following are capabilities of Dynamics 365 Project Operations? (Choose three.)

Accepted Answer

Resource Management. Resource Management (B) is a core capability of Dynamics 365 Project Operations, enabling project managers to find, schedule, and assign resources based on skills, availability, and role requirements. It integrates with Project Operations' scheduling engine to optimize resource utilization across projects.

Answer

Inventory Management

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Payroll Processing

Question 2

A food manufacturer uses Dynamics 365 Supply Chain Management. They need to ensure that raw materials are only used if they pass quality inspections. Which process should they implement?

Accepted Answer

Quality Management. D is correct because Dynamics 365 Supply Chain Management’s Quality Management module allows you to define quality orders and inspection criteria that block raw material consumption until the inspection is passed. By configuring item sampling, test instruments, and quality groups, the system ensures that inventory transactions (e.g., production picking) are prevented for materials that have not met the defined quality standards.

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Batch Attributes

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Nonconformance Management

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Inventory Statuses

Question 3

A distribution company uses Dynamics 365 Supply Chain Management. They want to automatically calculate transportation charges for outbound shipments based on weight and distance. Which module should they use?

Accepted Answer

Transportation management. Transportation management in Dynamics 365 Supply Chain Management is the module that handles carrier rate configuration, freight charge calculation, load planning, and route scheduling. It supports rate engines that compute charges based on weight, distance, zone, and other factors defined in rate masters and transit time engines.

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Inventory management

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Procurement and sourcing

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Warehouse management

Question 4

A company uses Dynamics 365 Project Operations. The project manager needs to create a project budget and track actuals against it. Which feature should be used?

Accepted Answer

Project budget management. Project budget management in Dynamics 365 Project Operations allows the project manager to create a detailed budget for a project and then track actual costs and revenues against that budget. This feature provides real-time variance analysis and integrates with the financial dimensions to ensure accurate budget control.

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Resource utilization

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Expense reports

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Project invoices

Question 5

Which TWO of the following are valid actions when using the 'Vendor collaboration' workspace in Dynamics 365 Finance?

Accepted Answer

Vendors can respond to purchase order confirmations.. Vendor collaboration in Dynamics 365 Finance allows vendors to respond to purchase order confirmations (option C) and view their invoices (option D). Options A, B, and E are incorrect: vendors cannot approve purchase requisitions, update item prices, or create purchase orders.

Answer

Vendors can approve purchase requisitions.

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Vendors can update item prices.

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Vendors can create purchase orders.

Question 6

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to reduce inventory holding costs by implementing a strategy where materials are ordered only when needed for production. Which inventory strategy should they use?

Accepted Answer

Just-in-time (JIT). Just-in-time (JIT) is the correct inventory strategy because it aligns with the goal of reducing holding costs by ordering materials only when they are needed for production. In Dynamics 365 Supply Chain Management, JIT can be implemented using kanban rules and lean manufacturing principles, which trigger replenishment based on actual consumption rather than forecasted demand, minimizing inventory levels.

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Reorder point

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Economic order quantity (EOQ)

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Safety stock

Question 7

An organization uses Dynamics 365 Finance. They need to revalue foreign currency bank accounts at month-end and post the unrealized gain or loss. Which process should be run?

Accepted Answer

Foreign currency revaluation. The Foreign currency revaluation process in Dynamics 365 Finance is specifically designed to revalue foreign currency-denominated bank accounts and ledger accounts at period end, calculating unrealized gains or losses due to exchange rate fluctuations. Running this process generates the necessary journal entries to adjust balances and post the unrealized gain/loss to the appropriate accounts.

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Settlement

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Consolidation

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General journal

Question 8

A company uses Dynamics 365 Supply Chain Management. They need to track the location of items in the warehouse using barcodes. Which feature should they use?

Accepted Answer

Warehouse management. Warehouse management in Dynamics 365 Supply Chain Management provides barcode-based scanning, mobile device support, and location tracking for items within the warehouse. It includes features like license plate tracking, work execution on mobile devices, and location directives that specifically enable barcode-driven item movement and tracking. This is the purpose-built module for warehouse-level item location tracking.

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Quality management

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Inventory management

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Transportation management

Question 9

A company uses Dynamics 365 Commerce. They want to provide personalized product recommendations on their e-commerce site based on customer purchase history. Which AI feature should they enable?

Accepted Answer

Product recommendations. Product recommendations in Dynamics 365 Commerce leverage AI and machine learning to analyze customer purchase history, browsing behavior, and product affinity to generate personalized suggestions on the e-commerce site. This feature is specifically designed to enhance cross-selling and upselling by delivering tailored product lists such as 'Frequently bought together' or 'Customers also viewed'.

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Customer Insights

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Sentiment analysis

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Market analysis

Question 10

Refer to the exhibit. A company uses Dynamics 365 Finance, Supply Chain Management, Commerce, and Human Resources. They want to use Copilot to predict inventory demand and suggest reorder points. Based on the exhibit, which Copilot capability should they enable?

Accepted Answer

Copilot in Supply Chain Management. Copilot in Supply Chain Management is the correct capability because it is specifically designed to analyze historical demand data, forecast future inventory needs, and suggest optimal reorder points. The scenario involves predicting inventory demand and reorder points, which falls under supply chain planning and inventory optimization features within Dynamics 365 Supply Chain Management.

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Copilot in Human Resources

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Copilot in Finance

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Copilot in Commerce

Question 11

A company uses Dynamics 365 Finance. The finance team needs to automate periodic tasks such as creating ledger settlements and running month-end closing processes. Which feature should they use?

Accepted Answer

Batch job processing. Batch job processing in Dynamics 365 Finance is designed to automate periodic and background tasks such as ledger settlements, month-end closing, and other recurring processes. Users can schedule batch jobs to run at specific times or recurrences, offloading work from interactive sessions. This is the standard feature for automating repetitive financial operations.

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Bank reconciliation

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Vendor invoice pool

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Financial reporting

Question 12

A logistics company uses Dynamics 365 Supply Chain Management. They want to optimize delivery routes to reduce fuel costs and improve on-time delivery. Which capability should they use?

Accepted Answer

Transportation management. Transportation management in Dynamics 365 Supply Chain Management provides route planning, rate shopping, and shipment consolidation capabilities. It uses real-time data and constraints (e.g., traffic, delivery windows) to optimize delivery routes, directly reducing fuel costs and improving on-time delivery.

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Production control

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Warehouse management

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Asset management

Question 13

A manufacturing company uses Dynamics 365 Supply Chain Management. They notice that the forecasted demand for a critical raw material is consistently lower than actual consumption, causing stockouts. What is the most likely cause?

Accepted Answer

The forecast profile does not include enough historical data or uses an inappropriate model.. Demand forecasting in Dynamics 365 Supply Chain Management relies on historical transaction data and a forecast model (e.g., moving average, exponential smoothing). If the forecast profile uses insufficient history or an inappropriate model for the item's demand pattern, the forecast will systematically understate actual consumption, leading to stockouts. This is the most likely cause of consistently low forecasts.

Answer

The coverage group for the item is set to 'Period' instead of 'Min/Max'.

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The item's inventory status is set to 'Blocked' for some warehouses.

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The item's model group is set to 'FIFO' instead of 'Weighted average'.

Question 14

A retail company uses Dynamics 365 Finance and Operations for financial reporting. They need to ensure that intercompany transactions are eliminated in consolidated financial statements. Which module should they use?

Accepted Answer

Consolidations. The Consolidations module in Dynamics 365 Finance and Operations is specifically designed to combine financial data from multiple legal entities into a single set of consolidated financial statements. It includes built-in functionality to automatically eliminate intercompany transactions and balances, ensuring that the consolidated reports reflect only external financial activity.

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Budgeting

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Accounts payable

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Fixed assets

Question 15

A warehouse manager notices that a purchase order receipt for 100 units of an item only updates the on-hand quantity by 80 units. The item is serial-controlled. The reception was recorded. What is the most likely reason for the discrepancy?

Accepted Answer

Not all serial numbers were registered during the receipt process.. When a purchase order receipt for 100 units of a serial-controlled item only updates on-hand quantity by 80, the most likely cause is that not all serial numbers were registered during the receipt process. In Dynamics 365 Supply Chain Management, serial-controlled items require each unit to have a unique serial number recorded at the time of receipt; if some serial numbers are missing or not scanned, the system only updates inventory for the registered serial numbers, leaving the receipt partially posted.

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The product dimensions (e.g., color) were not specified.

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A quality order was created for the received items.

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The items were partially reserved for a sales order.