MB-920 Practice Test 7 — 10 Questions

Question 1

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 2

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 3

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 4

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.

Answer

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 5

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 6

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 7

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 8

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 9

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 10

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.

Answer

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