This MB-920 practice question tests your understanding of describe dynamics 365 project operations. 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 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?
Product catalog
Why wrong: Product catalog is for products, not labor.
Role price list
Why wrong: Role price lists define billing rates, not cost prices.
Resource price list
Why wrong: Resource price lists are for billing.
Project price list
Project price lists can include cost and billing prices for roles and categories.
Answer choices
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.
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.
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.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates often 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.
Detailed technical explanation
In Dynamics 365 Project Operations, the Project price list is a central entity that can contain multiple price list lines, each defining a cost or sales price for a specific role, resource, or category. Under the hood, the system uses price list lines with attributes like 'Pricing Dimension' (e.g., Role, Resource) and 'Cost Price' or 'Sales Price' fields, allowing you to set standard cost prices for employees (via role-based pricing) and purchase prices for contractors (via resource-specific pricing). A real-world scenario is a consulting firm that uses a single Project price list to apply different rates for senior developers (employees) versus external consultants, ensuring accurate cost estimation and billing.
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.
What to study next
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FAQ
Describe Dynamics 365 Project Operations — This question tests Describe Dynamics 365 Project Operations — Read the scenario before looking for a memorised answer..
The correct answer is: 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.
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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