MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 supply chain management. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Refer to the exhibit. A purchase order is received with a freight charge. The company wants the freight cost to be allocated to inventory value for landed cost calculations. Which configuration is required?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Set up the charge code 'FREIGHT' as a landing cost and allocate it to the purchase order line.
Option A is correct because in Dynamics 365 Supply Chain Management, to allocate a freight charge to inventory value for landed cost calculations, you must set up a charge code (e.g., 'FREIGHT') with the 'Landing cost' option enabled. This charge code is then assigned to the purchase order line, which automatically distributes the freight cost proportionally across the items, increasing their inventory value as part of the landed cost.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
Set up the charge code 'FREIGHT' as a landing cost and allocate it to the purchase order line.
Why this is correct
Landing costs allocate charges to inventory value, increasing the cost of the item.
Related concept
Read the scenario before looking for a memorised answer.
✗
Use the 'Charges' code with debit type 'Item' to post to inventory.
Why it's wrong here
Charges can be posted to inventory, but landing cost is the proper module for allocation.
✗
Add the freight charge as a fixed cost to the vendor's invoice.
Why it's wrong here
Fixed costs do not allocate to inventory value; they are expensed.
✗
Create a new item for freight and include it in the purchase order.
Why it's wrong here
Freight is a service, not an item, and should not be inventoried.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse the 'Charges' code with debit type 'Item' (Option B) as a valid method for landed cost, but it lacks the allocation logic and does not integrate with the Landed cost module, which is specifically designed for this purpose.
Detailed technical explanation
How to think about this question
Under the hood, the 'Landing cost' charge code triggers the system to use the 'Landed cost' module's allocation engine, which distributes the charge based on the allocation method (e.g., by quantity, weight, or volume) defined on the charge code. A subtle behavior is that the charge must be assigned to the purchase order line, not the header, for the allocation to work correctly; header-level charges are treated as general costs and do not update item inventory value. In a real-world scenario, this is critical for industries like retail or manufacturing where accurate inventory valuation directly impacts cost of goods sold and profit margins.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Describe Dynamics 365 Supply Chain Management — This question tests Describe Dynamics 365 Supply Chain Management — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Set up the charge code 'FREIGHT' as a landing cost and allocate it to the purchase order line. — Option A is correct because in Dynamics 365 Supply Chain Management, to allocate a freight charge to inventory value for landed cost calculations, you must set up a charge code (e.g., 'FREIGHT') with the 'Landing cost' option enabled. This charge code is then assigned to the purchase order line, which automatically distributes the freight cost proportionally across the items, increasing their inventory value as part of the landed cost.
What should I do if I get this MB-920 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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