MB-920 Describe Dynamics 365 Finance Practice Question
A company is implementing Dynamics 365 Finance and needs to track expenses by department and project. What dimension combination should be used?
Answer choices
Why each option matters
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
Department and Project are both financial dimensions in Dynamics 365 Finance, enabling expense tracking by department and project. Option B is wrong because Vendor is a party type, not a financial dimension. Option C is wrong because Item is a product dimension, not suitable for tracking expenses by department and project. Option D is wrong because Location is a dimension but is not typically used for expense tracking in this context; Cost center alone would be more appropriate.
Answer analysis
Option-by-option breakdown
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
Department and Project are both financial dimensions in Dynamics 365 Finance, enabling expense tracking by department and project.
- ✗
Department and Vendor
Why it's wrong here
Vendor is a party type, not a financial dimension.
- ✗
Item and Project
Why it's wrong here
Item is a product dimension, not suitable for tracking expenses by department and project.
- ✗
Location and Cost center
Why it's wrong here
Location and Cost centre track physical location and operational overhead, not the dual reporting structure of department and project. The correct combination—Department and Project—directly captures both organisational unit and work breakdown, which Location and Cost centre cannot. This option tempts because cost centres are commonly used for expense tracking in accounting, and in a scenario where only departmental overhead allocation is needed, Location and Cost centre would be correct.
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Same concept, more angles
3 more ways this is tested on MB-920
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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?
easy- A.Create separate cost centers and cost objects.
- B.Use main accounts and subaccounts.
- C.Configure budget codes and budget classes.
- ✓ D.Add Department and Project as financial dimensions to the main account.
Why D: In Dynamics 365 Finance, financial dimensions (e.g., Department and Project) are attributes attached to a main account to enable tracking by multiple dimensions simultaneously. Option A is wrong because cost centers and cost objects belong to cost accounting, not general ledger dimension tracking. Option B is wrong because main accounts and subaccounts are for chart of accounts structure, not for multi-dimensional tracking. Option C is wrong because budget codes and budget classes are used for budgeting, not for expense tracking across dimensions.
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?
easy- A.Chart of accounts.
- B.Cost accounting module.
- ✓ C.Financial dimensions.
- D.Budget control.
Why C: 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?
easy- A.Account structures.
- B.Dimension sets.
- C.Advanced rules.
- ✓ D.Financial dimensions.
Why D: Financial dimensions (Option D) are used to track attributes like department and project in Dynamics 365 Finance. Account structures (Option A) define the chart of accounts, not for tracking additional attributes. Dimension sets (Option B) are used for reporting and analysis, not for transaction capture. Advanced rules (Option C) allow for conditional dimension combinations, but the base dimension type for capturing department and project is financial dimensions.
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