Quick Answer
The correct answer is Department and Project, as these are both financial dimensions in Dynamics 365 Finance. Financial dimensions are used to categorize transactions for detailed reporting and analysis, allowing you to track expenses by department and project simultaneously. This combination enables precise cost allocation and profitability tracking across organizational units and specific initiatives. On the MB-920 exam, this tests your understanding of how financial dimensions differ from other data entities like parties or product dimensions—a common trap is confusing a vendor (a party) or an item (a product dimension) with a financial dimension. Remember, financial dimensions are always about segmentation for accounting and reporting, not about who or what is involved. A useful memory tip: think of financial dimensions as the "where and why" of a transaction—department tells you where the cost belongs, and project tells you why the cost was incurred.
This MB-920 practice question tests your understanding of describe dynamics 365 finance. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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.
A company is implementing Dynamics 365 Finance and needs to track expenses by department and project. What dimension combination should be used?
Department and Project
Both are financial dimensions.
Department and Vendor
Why wrong: Vendor is not a financial dimension.
Item and Project
Why wrong: Item is a product dimension.
Location and Cost center
Why wrong: Location is a dimension but not typically for expense tracking.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Department and Project
Option A is correct because department and project are financial dimensions. Option B is wrong because vendor is a party, not a dimension. Option C is wrong because location is a dimension but not typically used for expense tracking. Option D is wrong because item is a product dimension.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Department and Project
Why this is correct
Both are financial dimensions.
Related concept
Static NAT maps one inside address to one outside address.
Department and Vendor
Why it's wrong here
Vendor is not a financial dimension.
Item and Project
Why it's wrong here
Item is a product dimension.
Location and Cost center
Why it's wrong here
Location is a dimension but not typically for expense tracking.
Common exam traps
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Real-world example
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related MB-920 NAT questions on configuration and troubleshooting.
Describe Dynamics 365 Finance — study guide chapter
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FAQ
Describe Dynamics 365 Finance — This question tests Describe Dynamics 365 Finance — Static NAT maps one inside address to one outside address..
The correct answer is: Department and Project — Option A is correct because department and project are financial dimensions. Option B is wrong because vendor is a party, not a dimension. Option C is wrong because location is a dimension but not typically used for expense tracking. Option D is wrong because item is a product dimension.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related MB-920 NAT questions on configuration and troubleshooting.
Static NAT maps one inside address to one outside address.
About these practice questions
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Same concept, more angles
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. A company uses Dynamics 365 Finance and needs to track expenses by department and project simultaneously. Which financial dimension configuration should they use?
easyWhy D: Option A is correct because 'Department' and 'Project' are financial dimensions that can be used together. Option B is wrong because cost centers and cost objects are for cost accounting. Option C is wrong because main accounts and subaccounts are for chart of accounts. Option D is wrong because budget codes and budget classes are for budgeting.
Variation 2. A company uses Dynamics 365 Finance and needs to track expenses by department and project. Which feature should be configured to capture this information on all financial transactions?
easyWhy C: Option C is correct because financial dimensions allow tracking by department, project, and other dimensions. Option A is wrong because the chart of accounts structures the main accounts but does not capture additional dimensions. Option B is wrong because cost accounting is for internal cost management. Option D is wrong because budgeting is for planning.
Variation 3. A company uses Dynamics 365 Finance and needs to track expenses by department and project. Which dimension type should be used to capture this information?
easyWhy D: Option A is correct because financial dimensions are used for tracking attributes like department and project. Option B is wrong because account structures define the chart of accounts. Option C is wrong because advanced rules set conditions for dimensions. Option D is wrong because dimension sets are for reporting, not transaction capture.
Last reviewed: Jun 21, 2026
This MB-920 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 MB-920 exam.
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