Describe the core capabilities of the finance and operations apps →mediumMultiple ChoiceObjective-mapped
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
A company uses Dynamics 365 Project Operations. They want to track time and expenses against a project and invoice the customer based on actuals. Which billing method should they use?
⚠ Common exam trap
A common mix-up: candidates confuse 'Cost plus' with 'Time and material' because both involve actual costs, but Cost plus adds a markup on costs rather than billing directly for time and expenses as actuals.
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
✓
Time and material
Time and material billing is the correct method because it invoices the customer based on actual time entries and expenses tracked against the project. In Dynamics 365 Project Operations, this billing method is designed for projects where the scope is uncertain and the customer agrees to pay for actual effort and costs incurred.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Time and material
Why this is correct
Time and material invoices based on actual time and expenses.
- ✗
Cost plus
Why it's wrong here
Cost plus bills cost plus markup.
- ✗
Milestone billing
Why it's wrong here
Milestone billing is based on project stages.
- ✗
Fixed price
Why it's wrong here
Fixed price does not use actuals.
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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.