MB-920 Practice Test 30 — 15 Questions

Question 1

A distribution company uses Dynamics 365 Supply Chain Management. They notice that the cost of goods sold (COGS) is being incorrectly calculated for certain items. The items are set up with a costing method of 'FIFO' and the inventory model is 'FIFO with physical value'. The issue occurs when purchase orders are received but not yet invoiced. What is the most likely cause of the incorrect COGS calculation?

Accepted Answer

The physical receipt cost differs from the final invoice cost. Option D is correct because in FIFO with physical value, COGS is calculated based on the physical receipt cost, which may differ from the final invoice cost. If the receipt cost is inaccurate, COGS will be incorrect until the invoice is posted. Option A is wrong because the inventory model is correctly set to FIFO. Option B is wrong because the issue is not related to the costing method but to the timing of cost updates. Option C is wrong because inventory close is a periodic process that corrects costs, but the question describes a persistent error.

Answer

The inventory close process has not been run

Answer

The costing method should be 'Standard cost'

Answer

The inventory model should be 'FIFO with financial value'

Question 2

Which TWO benefits does the Asset management module in Dynamics 365 Supply Chain Management provide?

Accepted Answer

Preventive maintenance scheduling. Option A is correct because Asset management supports preventive maintenance scheduling. Option C is correct because it tracks maintenance history and costs. Option B is wrong because warranty management is not a primary feature of Asset management; it's more about maintenance. Option D is wrong because vendor performance analysis is part of Procurement. Option E is wrong because demand forecasting is part of Master planning.

Answer

Automated warranty claims processing

Answer

Vendor performance analysis

Answer

Demand forecasting

Question 3

A company uses Dynamics 365 Supply Chain Management and needs to track the cost of goods sold (COGS) using a method that assumes the most recently produced items are sold first. Which inventory costing method should they use?

Accepted Answer

LIFO (Last In, First Out). LIFO (Last In, First Out) assumes the last items produced are sold first. Option B is correct. Option A (FIFO) assumes first items produced are sold first. Option C (Weighted average) uses an average cost. Option D (Standard cost) uses predetermined costs.

Answer

Standard cost

Answer

Weighted average

Answer

FIFO (First In, First Out)

Question 4

A company uses Dynamics 365 Supply Chain Management and wants to implement a process where products are tracked from raw material to finished goods using unique identifiers. Which feature should they enable to achieve this?

Accepted Answer

Serial number tracking. Option B is correct because serial number tracking allows unique identification and traceability of individual items throughout the supply chain. Option A is wrong because batch tracking groups items with common attributes. Option C is wrong because catch weight is for variable-weight items. Option D is wrong because product configuration is for configurable products.

Answer

Batch tracking

Answer

Product configuration

Answer

Catch weight

Question 5

Which TWO Dynamics 365 Supply Chain Management features are used to manage quality control?

Accepted Answer

Nonconformance management. Options B and D are correct. Quality management (B) handles inspections, and Nonconformance management (D) handles defects. Option A is wrong because Inventory counting is for stock counts. Option C is wrong because Product configuration is for configurable products. Option E is wrong because Vendor collaboration is for supplier communication.

Answer

Inventory counting

Answer

Product configuration

Answer

Vendor collaboration

Question 6

Refer to the exhibit. A production planner sees that a work center has a capacity of 480 minutes per day, but jobs are consistently late. They suspect the calendar is not accounting for breaks. What should they verify?

Accepted Answer

Verify that the calendar includes break times. Option C is correct because if breaks are not in the calendar, effective capacity is lower; the planner should check if the calendar includes break hours. Option A is incorrect because efficiency is 100% but doesn't account for breaks. Option B is incorrect because scheduling direction affects sequencing, not capacity. Option D is incorrect because capacity minutes is set.

Answer

Reduce capacity to 420 minutes

Answer

Increase efficiency percentage

Answer

Change scheduling direction to backward

Question 7

A company uses Dynamics 365 Supply Chain Management with advanced warehouse management. They need to enforce that workers scan a license plate when completing a transfer order receipt. Which configuration should be used?

Accepted Answer

Modify the mobile device menu item for receipt. Mobile device menu items can enforce license plate scanning. Option C is correct. Option A is for mobile device display settings. Option B is for cycle counting. Option D is for work creation.

Answer

Configure the mobile device display settings

Answer

Set up cycle counting thresholds

Answer

Define work templates for transfer orders

Question 8

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

Accepted Answer

Real-time asset tracking. IoT integration enables predictive maintenance and real-time asset tracking. Option A and Option D are correct. Option B is for analytics. Option C is for finance. Option E is for procurement.

Answer

Real-time customer credit check

Answer

Vendor negotiation

Answer

Automated financial closing

Question 9

A company manufactures high-value equipment and needs to track each individual item's location, status, and service history throughout its lifecycle. Which capability should they use?

Accepted Answer

Asset Management. Option A is correct because asset management tracks equipment lifecycle, location, and service history. Option B is wrong because product configuration is for variant creation. Option C is wrong because batch tracking is for lot-controlled items. Option D is wrong because warehouse management focuses on storage and picking.

Answer

Warehouse Management

Answer

Batch tracking

Answer

Product configuration

Question 10

A company uses Dynamics 365 Supply Chain Management to manage its supply chain. They need to track the carbon footprint of each product throughout its lifecycle. Which capability should they use?

Accepted Answer

Sustainability module. Option C is correct because the Sustainability module in Dynamics 365 Supply Chain Management provides carbon footprint tracking. Option A is wrong because Product compliance focuses on regulatory compliance, not carbon footprint. Option B is wrong because Asset management tracks equipment, not product carbon footprint. Option D is wrong because Quality management ensures product quality, not environmental impact.

Answer

Asset management

Answer

Quality management

Answer

Product compliance

Question 11

A company uses Dynamics 365 Supply Chain Management and wants to implement a strategy where products are stored at multiple warehouse locations, but picking is optimized by consolidating orders from the nearest location to the customer. Which configuration supports this?

Accepted Answer

Set up multi-site warehouse management and use location directives. Multi-site warehouse management with location directives allows routing of picking to the nearest warehouse based on distance or zone. Option C is correct. Option A (Single warehouse with zones) does not span multiple physical sites. Option B (Transfer orders only) moves stock but does not optimize picking across sites. Option D (Vendor-managed inventory) is a supplier strategy, not internal optimization.

Answer

Implement vendor-managed inventory for all products

Answer

Use transfer orders to move stock between warehouses

Answer

Configure a single warehouse with multiple zones

Question 12

Which TWO of the following are valid master planning types in Dynamics 365 Supply Chain Management?

Accepted Answer

Supply planning. Master planning includes both intercompany and supply planning. Demand planning and capacity planning are related but not master planning types. Distribution planning is also a type. Correct: A and C.

Answer

Demand planning

Answer

Capacity planning

Answer

Distribution planning

Question 13

A company uses Dynamics 365 Supply Chain Management with master planning. They notice that planned orders are not being firmed automatically even though the coverage group settings have a firming time fence. What could be the cause?

Accepted Answer

The master plan is not set to include the firming action.. The firming time fence is set in the coverage group, but the master plan must be triggered with the 'Firming' action. The coverage group setting alone does not automatically firm; the plan must be run with the 'Firming' method. If the plan is run without firming, orders remain planned.

Answer

The firming time fence is longer than the planning horizon.

Answer

The item has a minimum inventory quantity set to zero.

Answer

The coverage group is not assigned to the item.

Question 14

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. Option A is correct because wave processing allows grouping of shipments into waves based on criteria like common customer or route, optimizing picking and shipping. Option B is wrong because cluster picking is a specific picking method. Option C is wrong because cross-docking is for direct transfer without storage. Option D is wrong because kanban is for lean manufacturing.

Answer

Cross-docking

Answer

Cluster picking

Answer

Kanban

Question 15

Refer to the exhibit. A company has configured the product F0001 with the storage dimension group 'SiteWarehouse' and tracking dimension group 'BatchSerial'. What does this configuration allow?

Accepted Answer

Both batch and serial number tracking. Option C is correct because 'BatchSerial' tracking dimension group enables both batch and serial number tracking. Option A is wrong because 'SiteWarehouse' allows storage dimensions but not tracking. Option B is wrong because 'BatchSerial' includes both, not just batch. Option D is wrong because it enables both batch and serial tracking.

Answer

Only batch number tracking

Answer

Only serial number tracking

Answer

Only warehouse and site tracking