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 manufacturing company uses Dynamics 365 Finance and Operations to manage its production processes. They need to track the consumption of raw materials and labor during the production run. Which module should they use to capture this data in real time?
Cost accounting
Why wrong: Cost accounting handles post-production costing, not real-time tracking.
Procurement and sourcing
Why wrong: Procurement is for purchasing, not production tracking.
Inventory management
Why wrong: Inventory management tracks stock levels, not real-time production consumption.
Production control
Production control tracks materials and labor during production.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Production control
Production control is the correct module because it is specifically designed to manage and execute production orders, including real-time registration of raw material consumption (via pick lists or reporting as finished) and labor hours (via route card or job card entries). This data is captured directly against the production order, enabling accurate tracking of actual costs during the production run.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Cost accounting
Why it's wrong here
Cost accounting handles post-production costing, not real-time tracking.
Procurement and sourcing
Why it's wrong here
Procurement is for purchasing, not production tracking.
Inventory management
Why it's wrong here
Inventory management tracks stock levels, not real-time production consumption.
Production control
Why this is correct
Production control tracks materials and labor during production.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates confuse the real-time data capture capability of Production control with the analytical or transactional nature of Cost accounting or Inventory management, assuming those modules also handle shop-floor labor tracking.
Detailed technical explanation
Under the hood, the Production control module uses production orders as the central entity, where each order has a bill of materials (BOM) and a route. When a worker reports material consumption via a pick list or a route card, the system automatically updates inventory and posts work-in-progress (WIP) journal entries. In a real-world scenario, if a company uses barcode scanning on the shop floor, the Production control module can integrate with warehouse management to decrement raw material inventory instantly and record labor hours against the operation, ensuring accurate cost roll-up.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
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FAQ
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..
The correct answer is: Production control — Production control is the correct module because it is specifically designed to manage and execute production orders, including real-time registration of raw material consumption (via pick lists or reporting as finished) and labor hours (via route card or job card entries). This data is captured directly against the production order, enabling accurate tracking of actual costs during the production run.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
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