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MB-920 Practice Question: A consulting firm uses Dynamics 365 Project…
A consulting firm uses Dynamics 365 Project Operations to manage fixed-price projects. During project execution, the project manager notices that the actual cost is exceeding the budget. What should the project manager do to track and communicate the impact on profit?
⚠ Common exam trap
Many candidates confuse cost performance metrics (CPI) with schedule metrics (SPI) or operational metrics (resource utilization), leading them to select options that address resource allocation or schedule delays instead of the direct cost-to-profit impact.
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
✓
Review the Cost Performance Index (CPI) on the project and update the estimate at completion (EAC).
In Dynamics 365 Project Operations, the Cost Performance Index (CPI) is the key metric for measuring cost efficiency on a project. When actual costs exceed the budget, the project manager should review the CPI and update the Estimate at Completion (EAC) to forecast the total expected cost based on current performance, directly communicating the impact on profit.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Analyze resource utilization percentages to identify over-allocated resources.
Why it's wrong here
Resource utilization does not directly measure profit impact.
- ✓
Review the Cost Performance Index (CPI) on the project and update the estimate at completion (EAC).
Why this is correct
CPI is the correct metric to monitor cost efficiency and forecast final costs.
- ✗
Review the Schedule Performance Index (SPI) to assess if the project is behind schedule.
Why it's wrong here
SPI measures schedule, not cost performance.
- ✗
Compare the project budget to the actual cost in the project invoice.
Why it's wrong here
Invoices reflect billed amounts, not ongoing cost efficiency.
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