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Describe Dynamics 365 FinancemediumMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Finance Practice Question

Exhibit

Refer to the exhibit. 

{
  "IsActive": true,
  "Name": "Overhead Allocation",
  "AllocationMethod": "Basis",
  "SourceBalances": {
    "MainAccount": "601100",
    "FinancialDimensions": {
      "CostCenter": ""
    }
  },
  "DestinationBalances": {
    "MainAccount": "601200",
    "FinancialDimensions": {
      "CostCenter": ""
    }
  },
  "AllocationBasis": {
    "BasisType": "FinancialDimension",
    "FinancialDimension": "CostCenter",
    "BasisValue": ""
  }
}

Refer to the exhibit. A company has configured the above allocation rule in Dynamics 365 Finance. What does this rule do?

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

Allocates overhead from account 601100 to 601200 based on cost center

The allocation rule transfers balances from main account 601100 to main account 601200, using the cost center dimension as the basis for allocation. Option B correctly describes this. Option A is incorrect because although it identifies the correct source and destination accounts, it states 'based on main account' rather than 'based on cost center.' Option C is wrong because it reverses the source and destination accounts. Option D is incorrect because the rule uses a dimension basis (cost center) rather than a fixed percentage.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Allocates overhead from account 601100 to 601200 based on main account

    Why it's wrong here

    The basis is cost center, not main account.

  • Allocates overhead from account 601100 to 601200 based on cost center

    Why this is correct

    The exhibit shows source 601100, destination 601200, basis cost center.

  • Allocates overhead from account 601200 to 601100 based on cost center

    Why it's wrong here

    The source is 601100, destination is 601200.

  • Allocates a fixed percentage of overhead to all departments

    Why it's wrong here

    The method is Basis, not fixed percentage.

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