MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A company uses Dynamics 365 Supply Chain Management. They need to track the cost of raw materials and finished goods accurately for financial reporting. Which module should they use?
⚠ Common exam trap
It's easy for candidates to confuse Inventory management with cost tracking, but Inventory management only tracks quantities and locations, not the financial valuation and cost analysis required for reporting.
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
✓
Cost management
The Cost management module in Dynamics 365 Supply Chain Management is specifically designed to handle cost accounting, inventory valuation, and financial reporting for raw materials and finished goods. It provides features like standard cost, actual cost, and costing sheets to ensure accurate cost tracking and compliance with financial reporting standards.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Production control
Why it's wrong here
Production control manages manufacturing processes.
- ✗
Inventory management
Why it's wrong here
Inventory management tracks quantities, not costs.
- ✗
Warehouse management
Why it's wrong here
Warehouse management handles physical warehouse operations.
- ✓
Cost management
Why this is correct
Cost management handles cost tracking and valuation.
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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.