Quick Answer
The answer is the Custom activity and the Azure Function activity, as these two data processing options in Azure Data Factory allow you to run custom code. The Custom activity executes your .NET or PowerShell scripts within an Azure Batch pool, giving you full control over complex transformations like custom data validation or third-party API integration that built-in activities cannot handle. The Azure Function activity, meanwhile, lets you invoke serverless functions written in languages like C# or Python, offering a lightweight, event-driven alternative for custom logic. On the DP-203 exam, this distinction often appears in scenario-based questions where you must choose between native activities and custom code solutions; a common trap is selecting a Databricks or HDInsight activity, which run pre-packaged notebooks or jobs rather than arbitrary custom code. Remember the memory tip: “Custom for Batch, Function for serverless” — if you need to write raw code, think Batch or Azure Functions, not a cluster.
This DP-203 practice question tests your understanding of develop data processing. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Which TWO data processing activities in Azure Data Factory allow you to run custom code?
Data Flow activity
Why wrong: Visual data transformation.
Copy activity
Why wrong: Only moves data.
Custom activity
Runs custom code on Azure Batch.
Azure Function activity
Executes Azure Functions.
Stored Procedure activity
Why wrong: Executes stored procedures.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Custom activity
Option C is correct because the Custom activity in Azure Data Factory allows you to execute custom code by running a .NET or PowerShell script in an Azure Batch service. This enables you to implement complex transformation logic that is not natively supported by ADF's built-in activities, such as custom data validation or integration with third-party APIs.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Data Flow activity
Why it's wrong here
Visual data transformation.
Copy activity
Why it's wrong here
Only moves data.
Custom activity
Why this is correct
Runs custom code on Azure Batch.
Related concept
Read the scenario before looking for a memorised answer.
Azure Function activity
Why this is correct
Executes Azure Functions.
Related concept
Read the scenario before looking for a memorised answer.
Stored Procedure activity
Why it's wrong here
Executes stored procedures.
Common exam traps
The trap here is that candidates often confuse the Custom activity with the Azure Function activity, thinking both run custom code, but the question asks for 'custom code' in the context of ADF's native activities—Azure Function activity is also correct because it runs custom code via an Azure Function, making it a valid choice alongside Custom activity.
Detailed technical explanation
The Custom activity leverages Azure Batch to run your code in a managed pool of compute nodes, supporting both .NET (via a DLL) and PowerShell scripts. This is distinct from the Azure Function activity, which runs serverless functions in Azure Functions; the Custom activity is better suited for long-running or resource-intensive tasks because it can use a dedicated Batch pool with configurable VM sizes. A real-world scenario is using a Custom activity to perform complex data masking or encryption that requires external libraries not available in Data Flow or Copy activities.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
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FAQ
Develop data processing — This question tests Develop data processing — Read the scenario before looking for a memorised answer..
The correct answer is: Custom activity — Option C is correct because the Custom activity in Azure Data Factory allows you to execute custom code by running a .NET or PowerShell script in an Azure Batch service. This enables you to implement complex transformation logic that is not natively supported by ADF's built-in activities, such as custom data validation or integration with third-party APIs.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
This DP-203 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the DP-203 exam.
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