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 retail company is implementing Dynamics 365 Finance and Operations. They need to track the financial performance of each store as a separate profit center. Which configuration should they use?
⚠ Common exam trap
Many candidates confuse cost centers (which track only costs) with profit centers (which track both revenue and costs), leading them to select Option B instead of D.
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
✓
Assign financial dimensions to each store and configure the store as a profit center.
Financial dimensions in Dynamics 365 Finance and Operations allow you to segment financial data for reporting and analysis. By assigning a financial dimension to each store and configuring it as a profit center, the company can track revenue, costs, and profitability at the store level without creating separate legal entities.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Use the Budget control feature to monitor store spending.
Why it's wrong here
Budget control is for planning, not tracking actual performance.
- ✗
Set up cost centers for each store.
Why it's wrong here
Cost centers track costs, not profits.
- ✗
Create a separate legal entity for each store.
Why it's wrong here
Creating separate legal entities is excessive and not necessary for profit center tracking.
- ✓
Assign financial dimensions to each store and configure the store as a profit center.
Why this is correct
Financial dimensions allow tracking by different segments, and profit centers track profitability.
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