MB-920 Practice Questions 2 — 50 Questions

Question 1

A company uses Dynamics 365 Project Operations to manage projects. A project manager needs to view the overall health of all active projects in the organization. Which dashboard should the manager use?

Accepted Answer

Project Manager dashboard. The Project Manager dashboard in Dynamics 365 Project Operations is specifically designed to provide a consolidated view of project health metrics, including schedule variance, cost variance, and overall status across all active projects. This dashboard uses built-in Power BI reports to aggregate data from project plans, actuals, and forecasts, enabling the project manager to quickly assess which projects are on track, at risk, or behind schedule.

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Sales dashboard

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Time Entry dashboard

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Resource Manager dashboard

Question 2

A manufacturing company uses Dynamics 365 Finance and Operations. The production manager notices that raw material costs are being recorded against the wrong work order. What feature should be configured to ensure costs are correctly allocated?

Accepted Answer

Cost accounting dimensions. Cost accounting dimensions in Dynamics 365 Finance and Operations allow you to define and track financial data by specific attributes, such as work orders, projects, or cost centers. By configuring cost accounting dimensions, the system can enforce that raw material costs are allocated to the correct work order based on predefined rules, ensuring accurate cost tracking and reporting.

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Power BI reports

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Data management

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Production orders

Question 3

A company wants to share product data across multiple Dynamics 365 Finance legal entities. What should be used?

Accepted Answer

Shared product master. The Shared product master (B) is the correct feature because it allows product data to be defined once and shared across multiple Dynamics 365 Finance legal entities. This ensures consistent product information, such as item numbers, descriptions, and dimensions, is synchronized without duplication, which is essential for multi-entity organizations.

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Purchase agreements

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Inventory journal

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Sales orders

Question 4

Which TWO capabilities are core to Dynamics 365 Supply Chain Management?

Accepted Answer

Warehouse management. Warehouse management (B) is a core capability of Dynamics 365 Supply Chain Management, providing advanced inbound and outbound warehouse operations, wave processing, and location directives. Transportation management (E) is also core, offering freight rating, routing, and shipment consolidation to optimize logistics. Together, they directly support the end-to-end supply chain processes within the application.

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Project cost management

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Omnichannel order management

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Financial reporting

Question 5

A project manager needs to approve time entries submitted by team members. Where in Dynamics 365 Project Operations can the manager approve these time entries?

Accepted Answer

Project Manager Time Approval workspace. The Project Manager Time Approval workspace in Dynamics 365 Project Operations is the dedicated area where project managers can review, approve, or reject time entries submitted by team members. This workspace provides a filtered view of pending time entries and integrates with the project's approval workflow, ensuring that only authorized managers can process time submissions.

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Resource Manager dashboard

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Sales entity

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Project Contract

Question 6

Which TWO of the following are valid project types in Dynamics 365 Project Operations? (Choose two.)

Accepted Answer

Time and Material. In Dynamics 365 Project Operations, 'Time and Material' (Option B) is a valid project type that invoices customers based on actual hours worked and expenses incurred, making it suitable for projects where scope is not fully defined. This type allows for flexible billing and is commonly used in consulting or agile engagements.

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External

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Internal

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Investment

Question 7

A company uses Dynamics 365 Supply Chain Management. The warehouse manager reports that inventory counts are consistently inaccurate. Which feature should be used to improve inventory accuracy?

Accepted Answer

Cycle counting. Cycle counting is a periodic inventory auditing process where a subset of items is counted on a regular schedule, allowing discrepancies to be identified and corrected without a full physical inventory. In Dynamics 365 Supply Chain Management, cycle counting helps maintain accurate on-hand inventory by systematically validating counts against system records, which directly addresses the warehouse manager's issue of consistently inaccurate counts.

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Picking

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Receiving

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Location directives

Question 8

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.

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Inventory Management

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Payroll Processing

Question 9

The exhibit shows an XML request to create a sales order via the Dynamics 365 Finance data service. The request fails with an error 'Customer account not found'. What is the most likely cause?

Accepted Answer

The CustomerAccount value is incorrect or missing. The error 'Customer account not found' indicates that the value provided in the <CustomerAccount> element of the XML request does not match any existing customer record in Dynamics 365 Finance. The data service validates the customer account against the CustTable before creating the sales order, so an incorrect or missing CustomerAccount value directly triggers this error.

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The quantity exceeds inventory

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The action URL is incorrect

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The XML is malformed

Question 10

A retailer using Dynamics 365 Commerce wants to implement a buy-one-get-one-free promotion. Which type of discount should be configured?

Accepted Answer

Multibuy discount. A buy-one-get-one-free (BOGO) promotion is a classic multibuy discount scenario where purchasing a specific quantity of an item triggers a free item. In Dynamics 365 Commerce, the Multibuy discount type is designed exactly for this: it applies a discount when a defined quantity of products is purchased, and it can be configured to give a percentage off or a fixed amount off, including making the second item free. This is distinct from simple discounts which apply to a single item, and total discounts which apply to the entire cart.

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Total discount

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Simple discount

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Customer loyalty discount

Question 11

A company uses Dynamics 365 Project Operations to manage project expenses. An employee submits an expense report for a project. The project manager needs to approve the expense report. Where does the project manager perform this approval?

Accepted Answer

Expense Approval workspace. In Dynamics 365 Project Operations, expense report approvals are handled through the Expense Approval workspace. This workspace is specifically designed for project managers and approvers to review, approve, or reject expense reports submitted by project team members. It provides a centralized view of all pending expense approvals tied to projects.

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Project Contract

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Resource Manager dashboard

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Time Approval workspace

Question 12

A project manager is configuring Dynamics 365 Project Operations for a company that uses Microsoft Project for detailed scheduling. The company wants to import the WBS from Microsoft Project into Dynamics 365 Project Operations. Which tool or feature should be used?

Accepted Answer

Project for the Web integration. Project for the Web integration is the correct tool because it provides native synchronization between Microsoft Project and Dynamics 365 Project Operations, allowing the Work Breakdown Structure (WBS) to be imported directly without custom development. This integration leverages the Common Data Service (CDS) to map project tasks, dependencies, and resources seamlessly.

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Data import wizard

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Power Automate flow

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Excel add-in

Question 13

Which TWO of the following are valid billing methods in Dynamics 365 Project Operations? (Choose two.)

Accepted Answer

Time and Material. Time and Material (B) is a valid billing method in Dynamics 365 Project Operations where customers are billed based on actual hours worked and expenses incurred, plus a markup. Fixed Price (C) is also valid, where a single total price is agreed upon for the entire project scope, regardless of actual effort. Both are core billing methods supported in the system for project-based invoicing.

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Flat Fee

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Retainer

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Cost Plus

Question 14

A company is implementing Dynamics 365 Project Operations and wants to ensure that project costs are accurately tracked for both time and materials (T&M) and fixed-price contracts. The company uses a single project for both types of contracts. Which approach should be used to correctly invoice each contract type?

Accepted Answer

Create two project contracts, one T&M and one fixed-price, and link both to the same project.. Option A is correct because Dynamics 365 Project Operations allows multiple project contracts to be linked to a single project, enabling different billing methods (T&M and fixed-price) for the same project. This ensures that time and material costs are tracked and invoiced according to the T&M contract terms, while fixed-price milestones are invoiced under the fixed-price contract, all from the same project data.

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Create two separate projects and link each to its own contract.

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Create a single project contract with the billing method set to fixed-price and adjust invoices manually.

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Create one project contract with a billing method of T&M and manually create invoices for the fixed-price portion.

Question 15

A company wants to use Dynamics 365 Finance to automate the approval of purchase requisitions under $1,000. What feature should be configured?

Accepted Answer

Workflow automation. Workflow automation in Dynamics 365 Finance allows you to define business processes that route documents for approval. By configuring a purchase requisition workflow with a conditional decision (e.g., amount <= $1,000), the system can automatically approve the requisition without manual intervention. This feature is specifically designed to automate approval steps based on configurable rules.

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Budget control

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Vendor approval

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Purchase policies

Question 16

The exhibit shows an error in Dynamics 365 Supply Chain Management when trying to reserve inventory. What is the most likely root cause?

Accepted Answer

There is insufficient inventory at the warehouse. The error in Dynamics 365 Supply Chain Management indicates that the reservation cannot be completed because the available on-hand inventory at the specified warehouse location is insufficient to cover the requested quantity. This is the most common cause of reservation failures, as the system checks physical available stock before allowing a reservation to proceed.

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The inventory unit of measure is incorrect

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The item is blocked for transactions

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The item is not set up for reservation

Question 17

A project manager needs to track time spent on a project in Dynamics 365 Project Operations. Which feature allows employees to submit time entries that can be approved and billed?

Accepted Answer

Time entry. Time entry in Dynamics 365 Project Operations is the dedicated feature for recording hours worked on projects. These entries can be submitted for approval and then used to bill customers, directly linking time capture to the project billing lifecycle.

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Expense management

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Resource scheduling

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Project budget control

Question 18

Which THREE are valid options for configuring product lifecycle states in Dynamics 365 Supply Chain Management? (Select exactly three.)

Accepted Answer

In development. Option A is correct because 'In development' is a default lifecycle state in Dynamics 365 Supply Chain Management that indicates a product is being created and is not yet available for transactions. This state prevents the product from being used in sales, purchasing, or production processes until it is released.

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Deleted

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Obsolete

Question 19

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 20

A Dynamics 365 administrator is configuring Copilot features for the sales team. Which TWO actions should the administrator take to ensure responsible AI usage?

Accepted Answer

Enable the feedback mechanism to allow users to report inaccurate responses. Option A is correct because enabling the feedback mechanism allows users to report inaccurate or inappropriate Copilot responses, which is a core requirement for responsible AI usage. This feedback loop helps administrators identify and correct issues, ensuring the AI system remains trustworthy and compliant with Microsoft's responsible AI principles. Without this mechanism, the organization would lack visibility into potential harms or inaccuracies generated by the AI.

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Disable access to all customer data to prevent Copilot from using it

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Restrict Copilot to only respond in English

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Encrypt all data at rest and in transit