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 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?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
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.
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.
✓
Create two project contracts, one T&M and one fixed-price, and link both to the same project.
Why this is correct
Multiple contracts can be linked to one project, each with its own billing method.
Related concept
Read the scenario before looking for a memorised answer.
✗
Create two separate projects and link each to its own contract.
Why it's wrong here
Separate projects would not share resources and schedules.
✗
Create a single project contract with the billing method set to fixed-price and adjust invoices manually.
Why it's wrong here
Manual adjustments are not recommended.
✗
Create one project contract with a billing method of T&M and manually create invoices for the fixed-price portion.
Why it's wrong here
A contract has a single billing method.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates assume a single project must have a single billing method, but Dynamics 365 Project Operations supports multiple contracts per project, each with its own billing method, enabling accurate hybrid invoicing.
Detailed technical explanation
How to think about this question
In Dynamics 365 Project Operations, the project contract entity defines the billing method (T&M or fixed-price) at the contract line level, not the project level. By creating two contracts with different billing methods and linking them to the same project, the system can generate invoices based on actuals (time/expense) for T&M lines and based on milestone completion for fixed-price lines, all while maintaining a single project for cost aggregation and reporting. This design supports hybrid billing scenarios common in professional services where a project includes both hourly work and fixed deliverables.
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: 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.
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.
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Question Discussion
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