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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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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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