Question 1mediummultiple choice
Full question →- A
Cycle counting
Regular counts improve accuracy.
- B
Picking
Why wrong: Outbound process.
- C
Receiving
Why wrong: Inbound process.
- D
Location directives
Why wrong: Guides putaway/picking.
Question 115 of 966
MB-920 Describe shared Dynamics 365 ERP features Practice Question
This MB-920 practice question tests your understanding of describe shared dynamics 365 erp features. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 uses Dynamics 365 Supply Chain Management. The warehouse manager reports that inventory counts are consistently inaccurate. Which feature should be used to improve inventory accuracy?
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
✓
Cycle counting
Cycle counting is a periodic inventory auditing process where a subset of items is counted on a regular schedule, allowing discrepancies to be identified and corrected without a full physical inventory. In Dynamics 365 Supply Chain Management, cycle counting helps maintain accurate on-hand inventory by systematically validating counts against system records, which directly addresses the warehouse manager's issue of consistently inaccurate counts.
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.
- ✓
Cycle counting
Why this is correct
Regular counts improve accuracy.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Picking
Why it's wrong here
Outbound process.
- ✗
Receiving
Why it's wrong here
Inbound process.
- ✗
Location directives
Why it's wrong here
Guides putaway/picking.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may confuse operational warehouse processes (picking, receiving, location directives) with inventory control features, assuming any warehouse activity can improve accuracy, when only cycle counting is specifically designed for ongoing validation and correction of inventory records.
Detailed technical explanation
How to think about this question
Cycle counting in Dynamics 365 can be configured using criteria such as item value, turnover rate, or location, and it supports counting plans that automatically generate counting work. The system can also enforce a 'freeze' on the inventory location during counting to prevent transactions, ensuring data integrity. In a real-world scenario, a high-volume warehouse might use ABC cycle counting, where 'A' items (high value) are counted more frequently than 'C' items, to maintain accuracy without disrupting operations.
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 cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
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.
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FAQ
Questions learners often ask
What does this MB-920 question test?
Describe shared Dynamics 365 ERP features — This question tests Describe shared Dynamics 365 ERP features — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Cycle counting — Cycle counting is a periodic inventory auditing process where a subset of items is counted on a regular schedule, allowing discrepancies to be identified and corrected without a full physical inventory. In Dynamics 365 Supply Chain Management, cycle counting helps maintain accurate on-hand inventory by systematically validating counts against system records, which directly addresses the warehouse manager's issue of consistently inaccurate counts.
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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Last reviewed: Jun 11, 2026
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.
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