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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 to manage projects. They need to track project budgets and actual costs in real-time. Which core capability should they use?

⚠ Common exam trap

A common mix-up: candidates confuse 'project accounting' (which focuses on financial postings and revenue recognition) with 'project cost management' (which specifically tracks budget vs. actual costs in real-time), leading candidates to select the broader but less precise option.

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

Project cost management

Project cost management in Dynamics 365 Project Operations provides real-time tracking of budgets versus actual costs by integrating cost estimates, actual transactions, and budget controls. This capability enables project managers to monitor cost performance continuously and receive alerts when costs exceed thresholds, ensuring financial control throughout the project lifecycle.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Project cost management

    Why this is correct

    Project cost management provides real-time tracking of project budgets and actual costs.

  • Resource management

    Why it's wrong here

    Resource management is for allocating personnel and equipment, not cost tracking.

  • Time and expense management

    Why it's wrong here

    Time and expense management captures time and expenses but does not track budgets.

  • Project accounting

    Why it's wrong here

    Project accounting typically deals with post-project financial reporting, not real-time tracking.

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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.