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MB-920 Practice Question: A project manager is using Dynamics 365 Project…
A project manager is using Dynamics 365 Project Operations to estimate project costs. The project involves a mix of in-house employees and external contractors. The company wants to use standard cost prices for employees and purchase prices for contractors. Which entity should the project manager use to set up these prices?
⚠ Common exam trap
Test-takers frequently confuse the Project price list with the Role price list, not realizing that the Role price list is a component of the Project price list and cannot independently manage mixed cost types (standard vs. purchase prices) without the parent Project price list context.
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
✓
Project price list
The project manager should use the Project price list (Option D) because it is specifically designed to define cost and sales prices for resources in a project context. In Dynamics 365 Project Operations, the Project price list allows you to set standard cost prices for employees and purchase prices for contractors, as it supports role-based pricing and can differentiate between internal and external resource costs based on the price list setup.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Product catalog
Why it's wrong here
Product catalog is for products, not labor.
- ✗
Role price list
Why it's wrong here
Role price lists define billing rates, not cost prices.
- ✗
Resource price list
Why it's wrong here
Resource price lists are for billing.
- ✓
Project price list
Why this is correct
Project price lists can include cost and billing prices for roles and categories.
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