MB-920 Describe Dynamics 365 Finance Practice Question
A company uses Dynamics 365 Finance. The CFO wants to analyze actuals vs budget across multiple departments and cost centers. Which THREE components must be set up?
⚠ Common exam trap
Many exam-takers confuse budget control configuration (a spending enforcement tool) with the foundational setup needed for budget analysis, leading them to select it instead of recognizing that budget model, cycle, and dimensions are the three core components.
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
✓
Budget model
The budget model is a required component because it defines the structure for how budget data is organized and calculated, such as by department or cost center. Without a budget model, the system cannot aggregate or compare actuals against budgeted amounts across different financial dimensions. It serves as the foundational framework for budget planning and analysis.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Budget control configuration
Why it's wrong here
For controlling spending, not analysis.
- ✓
Budget model
Why this is correct
Required to define budget amounts.
- ✓
Financial dimensions
Why this is correct
Enable analysis by department and cost center.
- ✓
Budget cycle
Why this is correct
Defines the time period for budgeting.
- ✗
Budget register entries
Why it's wrong here
Used to enter budget amounts, not analysis.
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