MB-920 Describe Dynamics 365 Project Operations Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 project operations. 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 Project Operations and needs to define cost and sales price lists for a project. Which TWO actions should the administrator take to ensure accurate project budgeting?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Define sales price lists with effective dates to cover different project phases.
Option C is correct because sales price lists in Dynamics 365 Project Operations support effective dates, allowing the administrator to define different prices for different project phases (e.g., design, development, deployment). This ensures that cost and revenue are accurately tracked as rates change over the project lifecycle, which is essential for precise project budgeting.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Set up cost price lists to include markup percentages.
Why it's wrong here
Markups are defined in sales price lists, not cost price lists.
✗
Configure discounts directly in the price list for bulk purchases.
Why it's wrong here
Discounts are applied at the transaction level, not within the price list.
✓
Define sales price lists with effective dates to cover different project phases.
Why this is correct
Effective dates allow different rates for different phases of the project.
Related concept
Read the scenario before looking for a memorised answer.
✗
Assign the same price list to all customers for consistency.
Why it's wrong here
Price lists are assigned per project, not per customer.
✓
Create a cost price list with role rates and labor categories.
Why this is correct
Cost price lists define cost rates for roles, which are used for budgeting.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse cost price lists with sales price lists, assuming markups or discounts belong in cost lists, when in fact cost lists are strictly for raw cost rates and sales lists handle pricing to customers.
Detailed technical explanation
How to think about this question
In Dynamics 365 Project Operations, price lists are entity records that store unit prices for roles, expenses, and materials. Cost price lists use role rates (e.g., hourly cost for a senior developer) and labor categories to calculate actual project costs, while sales price lists can have effective date ranges to phase in rate changes (e.g., a 10% increase after six months). This date-based versioning is stored in the Price List entity and evaluated during time entry and expense reporting, ensuring that budget vs. actual comparisons remain accurate even when rates change mid-project.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
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
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Describe Dynamics 365 Project Operations — This question tests Describe Dynamics 365 Project Operations — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Define sales price lists with effective dates to cover different project phases. — Option C is correct because sales price lists in Dynamics 365 Project Operations support effective dates, allowing the administrator to define different prices for different project phases (e.g., design, development, deployment). This ensures that cost and revenue are accurately tracked as rates change over the project lifecycle, which is essential for precise project budgeting.
What should I do if I get this MB-920 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
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.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.