MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
A manufacturing company uses Dynamics 365 Supply Chain Management. They notice that the inventory valuation for a specific item is inconsistent between the financial and operational reports. The item uses FIFO costing. What could be the most likely cause of this discrepancy?
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
✓
The inventory close process has not been run for the period.
The inventory close process recalculates cost of goods sold and adjusts inventory values for FIFO costing, ensuring consistency between financial and operational reports. Option A is incorrect because batch attributes are used for quality tracking and traceability, not inventory valuation. Option B is incorrect because an inventory status of 'Blocked' prevents transactions but does not affect the valuation calculation itself. Option D is incorrect because inventory recalculation is primarily for average cost methods, not FIFO; FIFO relies on the inventory close process to correct valuations.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The item has batch attributes configured.
Why it's wrong here
Batch attributes are for quality management, not cost.
- ✗
The item's inventory status is set to 'Blocked'.
Why it's wrong here
Inventory status does not impact valuation.
- ✓
The inventory close process has not been run for the period.
Why this is correct
Inventory close recalculates costs for FIFO.
- ✗
The inventory recalculation was run incorrectly.
Why it's wrong here
Recalculation is for average cost, not FIFO.
Go deeper
Related to this question
About these practice questions
Courseiva writes every MB-920 question from scratch — 930 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
JA
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.