- A
Location directives
Location directives automate where items are stored and picked, reducing errors.
- B
Demand forecasting
Why wrong: Demand forecasting is for planning, not day-to-day accuracy.
- C
Cycle counting
Cycle counting improves accuracy by frequently counting specific items or locations.
- D
Vendor collaboration
Why wrong: Vendor collaboration is for supplier interaction, not warehouse processes.
- E
Warehouse mobile device support
Mobile devices allow real-time inventory transactions and reduce manual errors.
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
This MB-920 practice question tests your understanding of describe the core capabilities of the finance and operations apps. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 distribution company uses Dynamics 365 Finance and Operations. The warehouse manager wants to improve inventory accuracy and reduce picking errors. Which THREE features should they implement?
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
Location directives
Location directives are correct because they guide warehouse workers to specific storage and picking locations, ensuring items are placed and retrieved from the correct bins. This directly reduces picking errors by enforcing system-defined paths and locations, improving inventory accuracy through standardized warehouse operations.
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.
- ✓
Location directives
Why this is correct
Location directives automate where items are stored and picked, reducing errors.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Demand forecasting
Why it's wrong here
Demand forecasting is for planning, not day-to-day accuracy.
- ✓
Cycle counting
Why this is correct
Cycle counting improves accuracy by frequently counting specific items or locations.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Vendor collaboration
Why it's wrong here
Vendor collaboration is for supplier interaction, not warehouse processes.
- ✓
Warehouse mobile device support
Why this is correct
Mobile devices allow real-time inventory transactions and reduce manual errors.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse planning features like demand forecasting with operational warehouse controls, assuming any inventory-related feature improves accuracy, when only direct warehouse execution tools (location directives, cycle counting, and mobile device support) address picking errors and real-time accuracy.
Detailed technical explanation
How to think about this question
Cycle counting uses ABC classification to prioritize high-value or fast-moving items for frequent counts, often triggered by system thresholds or user schedules, without requiring full inventory shutdowns. Warehouse mobile device support integrates with Dynamics 365’s Warehouse Management module to scan barcodes, validate picks in real time, and update inventory records instantly, reducing manual data entry errors. Location directives work with wave templates and work creation to automate the assignment of pick locations based on criteria like FEFO or zone, ensuring consistent execution of warehouse strategies.
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 media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this MB-920 question test?
Describe the core capabilities of the finance and operations apps — This question tests Describe the core capabilities of the finance and operations apps — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Location directives — Location directives are correct because they guide warehouse workers to specific storage and picking locations, ensuring items are placed and retrieved from the correct bins. This directly reduces picking errors by enforcing system-defined paths and locations, improving inventory accuracy through standardized warehouse operations.
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 24, 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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