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MB-920 Practice Question: Describe the core capabilities of the finance and operations apps

A company uses Dynamics 365 Project Operations for project-based work. They need to ensure that subcontractor expenses are billed to the customer at a markup. Which configuration should they set up?

⚠ Common exam trap

Test-takers frequently confuse billing rules or pricing templates with the direct category-level markup configuration, thinking that a contract-level setting will automatically apply markups to all expenses, when in fact the markup must be defined per expense category.

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

Create an expense category with a sales price markup percentage

To bill subcontractor expenses to a customer at a markup, you must configure an expense category with a sales price markup percentage. This allows the system to automatically calculate the billable amount by applying the markup to the actual cost of the subcontractor expense, ensuring the customer is charged the marked-up price.

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 an expense category with a sales price markup percentage

    Why this is correct

    Expense categories allow setting sales price markup for specific costs.

  • Define a project contract with a cost-plus pricing template

    Why it's wrong here

    Cost-plus templates apply to the whole project, not specific expense categories.

  • Configure billing rules on the project contract

    Why it's wrong here

    Billing rules control when to invoice, not per-expense markup.

  • Set up a fee schedule for subcontractor expenses

    Why it's wrong here

    Fee schedules apply to fixed fee items, not expense categories.

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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.