Describe the core capabilities of the finance and operations apps →easyMultiple ChoiceObjective-mapped
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
A project-based organization uses Dynamics 365 Project Operations. They need to track time and materials against a project and invoice the customer based on actuals. Which project contract billing method should they use?
⚠ Common exam trap
Many exam-takers confuse Time and Material with Cost plus, thinking both are based on actuals, but Cost plus typically involves a negotiated fee structure rather than direct billing of tracked time and materials.
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
✓
Time and material
A is correct because the Time and Material billing method in Dynamics 365 Project Operations allows the organization to track actual hours and expenses against a project and invoice the customer based on those actuals. This method is designed for projects where the scope is not fully defined upfront, and billing is directly tied to the recorded time and material consumption.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Time and material
Why this is correct
Time and material invoices based on actual time and expenses.
- ✗
Cost plus
Why it's wrong here
Cost plus is a cost reimbursement model.
- ✗
Fixed price
Why it's wrong here
Fixed price bills a fixed amount, not based on actuals.
- ✗
Milestone billing
Why it's wrong here
Milestone billing is based on project milestones, not actuals.
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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.