MB-920 Practice Test 4 — 25 Questions

Question 1

A batch job for master planning is configured as shown. The job runs daily at 2 AM. The planner notices that planned orders are not being firmed automatically. What is the likely reason?

Accepted Answer

The parameter FirmPlannedOrders is set to false.. The batch job for master planning is configured to run daily at 2 AM, but planned orders are not being firmed automatically. The most likely reason is that the parameter `FirmPlannedOrders` is set to `false`. In Dynamics 365 Supply Chain Management, this parameter controls whether planned orders are automatically firmed during master planning execution. When set to `false`, the system will generate planned orders but will not automatically convert them to firm planned orders or production/purchase orders, requiring manual intervention.

Answer

Safety stock is not included in the planning.

Answer

The recurrence is set to run daily, but the job should run hourly.

Answer

The job status shows an error.

Question 2

Which TWO features are available in Dynamics 365 Finance to support financial reporting and analysis?

Accepted Answer

Financial reporting. Financial reporting (Option B) is a core feature in Dynamics 365 Finance that provides out-of-the-box financial statements (e.g., balance sheet, income statement) using the Financial Reporting module, which leverages the financial dimensions and main accounts for customizable reporting. Business performance analytics (Option C) is a cloud-based, embedded analytics capability that offers pre-built KPIs, dashboards, and drill-through insights for real-time financial and operational analysis, directly supporting decision-making without requiring external tools.

Answer

Catalog management

Answer

Production scheduling

Answer

Inventory valuation

Question 3

A manufacturing company wants to track the cost of raw materials used in production in real-time. Which costing method should they use in Dynamics 365 Supply Chain Management?

Accepted Answer

Standard costing. Standard costing is the correct method because it uses predetermined costs for raw materials, enabling real-time variance analysis against actual costs. This allows the manufacturing company to immediately identify and track cost deviations during production, which is essential for real-time cost monitoring in Dynamics 365 Supply Chain Management.

Answer

FIFO (First In, First Out)

Answer

LIFO (Last In, First Out)

Answer

Moving average

Question 4

A company needs to generate financial statements that comply with local accounting standards in multiple countries. Which Dynamics 365 Finance module should be used to define and manage these reporting requirements?

Accepted Answer

Financial reporting. The Financial reporting module in Dynamics 365 Finance allows creation and management of financial statements for multiple reporting standards. Option A is wrong because Budgeting is for budget planning, not for local reporting standards. Option B is wrong because General ledger is the core ledger but does not directly manage local reporting requirements. Option D is wrong because Accounts payable is for vendor transactions.

Answer

Budgeting

Answer

General ledger

Answer

Accounts payable

Question 5

A store manager needs to process a return for a customer who purchased an item using a loyalty card. The manager wants to ensure that the loyalty points originally earned from that purchase are reversed. What should the manager do?

Accepted Answer

Process the return using the standard return function in POS.. In Dynamics 365 Commerce, the standard return function in POS automatically reverses any loyalty points that were earned on the original transaction. This ensures that the customer's loyalty balance is accurately adjusted without manual intervention or external requests.

Answer

Issue a store credit instead of a refund to keep the points.

Answer

Contact the head office to adjust the points.

Answer

Manually deduct the loyalty points from the customer's account.

Question 6

A company uses Dynamics 365 Supply Chain Management for production. They want to automatically create production orders when sales orders are entered for make-to-order items. Which planning method should they use?

Accepted Answer

Make-to-order (MTO) planning. Make-to-order (MTO) planning is the correct method because it directly links sales orders to production orders, automatically generating production orders when a sales order is entered for a make-to-order item. This ensures that production is triggered only when demand exists, aligning with the company's requirement for make-to-order scenarios in Dynamics 365 Supply Chain Management.

Answer

Discrete manufacturing with BOMs

Answer

Engineer-to-order (ETO) planning

Answer

Master planning with automatic firming

Question 7

You are reviewing a Power BI report that shows quality order counts by status. The report shows 0 for 'Open' status even though there are open quality orders. What is the most likely reason?

Accepted Answer

The query filters to only orders created in the last 30 days.. The Power BI report likely uses a filter that limits data to the last 30 days. Open quality orders may have been created earlier, so they are excluded from the report, resulting in a count of 0. Option A is wrong because open orders do exist, so the count is not actually zero. Option C is wrong because the 'CreationDate' field exists and is used for filtering. Option D is wrong because the 'Status' field is used in the report to categorize counts, but the filter on creation date is the cause.

Answer

The count of open orders is actually zero.

Answer

The 'CreationDate' field does not exist in the QualityOrders table.

Answer

The 'Status' field is not used in the summarize.

Question 8

A retail company is planning to expand its online presence and wants to use Dynamics 365 Commerce to build a new e-commerce site. They need to ensure that the site can handle high traffic during promotional events and that product catalog updates are reflected quickly. What should they consider?

Accepted Answer

Use a content delivery network (CDN) and optimize catalog synchronization.. Using a Content Delivery Network (CDN) caches static assets (images, scripts, CSS) at edge nodes, reducing load on the origin server during high-traffic promotional events. Optimizing catalog synchronization (e.g., using incremental syncs and the Commerce Data Exchange) ensures product updates are reflected quickly without full re-indexing, maintaining performance and data freshness.

Answer

Increase the size of the channel database.

Answer

Disable caching for product pages to ensure fresh data.

Answer

Limit the number of products in the catalog.

Question 9

A distribution company needs to automate the generation of purchase orders when inventory levels fall below a predefined threshold. Which feature in Dynamics 365 Supply Chain Management should be configured?

Accepted Answer

Replenishment rules. Replenishment rules automatically generate purchase orders based on inventory levels. Option A is wrong because inventory visibility is a monitoring tool, not for automation. Option B is wrong because vendor collaboration is for communication with vendors, not for automatic PO generation. Option D is wrong because batch balancing is used in production to balance load, not for purchase order generation.

Answer

Inventory visibility

Answer

Vendor collaboration

Answer

Batch balancing

Question 10

A manufacturer uses Dynamics 365 Supply Chain Management to manage production orders. They want to ensure that raw materials are automatically reserved and picked when a production order is released. Which parameter should be set on the production order or in the system?

Accepted Answer

Production order status. Releasing a production order changes its status to 'Released'. The automatic reservation and picking of raw materials upon release is controlled by the 'Automatic reservation' parameter, typically set in the coverage group or production order defaults. None of the listed options (Route version, Production order status, Reservation hierarchy, BOM version) correspond to this parameter.

Answer

Route version

Answer

Reservation hierarchy

Answer

BOM version

Question 11

Refer to the exhibit. The production order status is 'Started' and BOM consumption is set to 'Manual'. What must happen before the order can be reported as finished?

Accepted Answer

A picking list must be registered to consume raw materials. With manual consumption, a picking list must be registered to consume raw materials before the order can be reported as finished. Option C is correct. Option A describes automatic consumption, which is not applicable here. Option B is not required; scheduling is done before starting. Option D is for estimating costs, which is done before release.

Answer

The system automatically consumes raw materials

Answer

The order must be scheduled again

Answer

The order must be estimated

Question 12

A company wants to enable its warehouse workers to use handheld scanners to confirm picking activities. What must be configured in Dynamics 365 Supply Chain Management?

Accepted Answer

Warehouse Management mobile app. Warehouse Management mobile app. This app is the native interface for warehouse workers to use handheld scanners to confirm picking activities. Option B is incorrect because Power Apps mobile app is a general platform and not specifically designed for warehouse management tasks. Option C is incorrect because the Production floor execution interface is intended for manufacturing floor activities, not warehouse picking. Option D is incorrect because mobile device menu items are configuration elements within the Warehouse Management mobile app, but the app itself is required to be configured first.

Answer

Power Apps mobile app

Answer

Production floor execution interface

Answer

Mobile device menu items

Question 13

A global manufacturer uses Dynamics 365 Supply Chain Management. They need to configure a process that automatically generates purchase orders when inventory drops below a predefined level, based on real-time demand. Which feature should they use?

Accepted Answer

Reorder point planning. Reorder point planning creates purchase orders when stock hits a reorder point. Option A is incorrect because Vendor collaboration is for communication with suppliers, not for generating orders. Option B is incorrect because Master planning covers broader supply and demand planning, but reorder point planning is the specific feature for automated reordering based on predefined levels. Option C is incorrect because Demand forecasting predicts future demand but does not automatically generate purchase orders.

Answer

Vendor collaboration

Answer

Master planning

Answer

Demand forecasting

Question 14

Which TWO features are available in Dynamics 365 Supply Chain Management to support lean manufacturing?

Accepted Answer

Value stream mapping. Options B and E are correct because Value stream mapping and Kanban scheduling are key features of lean manufacturing in Dynamics 365 Supply Chain Management. Option A (Batch balancing) is used in process manufacturing, not lean. Option C (Product configuration) is for configurable products, not lean. Option D (Quality orders) are for quality inspections, not a lean manufacturing feature.

Answer

Batch balancing

Answer

Product configuration

Answer

Quality orders

Question 15

Which TWO features are available in Dynamics 365 Project Operations to help manage project profitability?

Accepted Answer

Resource cost rates and billing rates. A is correct because Dynamics 365 Project Operations uses resource cost rates and billing rates to calculate project costs and revenue, directly enabling profitability tracking. By defining cost rates for resources (e.g., hourly wages) and billing rates for customers, the system computes margins and supports profitability analysis.

Answer

Vendor contract management

Answer

Inventory costing methods

Answer

Sales tax calculation

Question 16

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 17

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 18

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 19

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 20

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