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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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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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