MB-920 Describe Dynamics 365 Finance Practice Question
A retail company uses Dynamics 365 Finance. They want to automatically allocate overhead costs from a cost center to multiple departments based on a predefined percentage. Which costing feature should they use?
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
✓
Cost allocations
Cost allocations distribute costs based on allocation bases. Cost accounting is the module. Overhead calculation is for manufacturing. Cost rollup is for bill of materials.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Cost accounting
Why it's wrong here
Cost accounting is the overall module, not a specific allocation feature.
- ✗
Overhead calculation
Why it's wrong here
Overhead calculation is for manufacturing overhead, not general cost allocation.
- ✓
Cost allocations
Why this is correct
Cost allocations allow distribution based on predefined percentages or other bases.
- ✗
Cost rollup
Why it's wrong here
Cost rollup aggregates costs from lower levels, not allocate.
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