The answer is 90.00, calculated by multiplying each raw material’s unit cost by its quantity in the bill of materials and summing the results. For FG-200, RM-300 requires 2 units at 20.00 each (40.00) and RM-400 requires 1 unit at 50.00 (50.00), giving a total of 90.00. This tests your understanding of how to calculate BOM cost using standard costing in Dynamics 365 Supply Chain Management, where the system rolls up costs from lower-level components to the finished good based on the BOM structure and predefined cost prices. On the MB-920 exam, expect a similar exhibit with a BOM tree and unit costs; a common trap is forgetting to multiply by the quantity per finished good. Remember the mnemonic “Unit cost times quantity, then add them all for the total quantity.”
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. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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.
The exhibit shows the cost breakdown for finished good FG-200. The cost of RM-300 is 20.00 per unit, and RM-400 is 50.00 per unit. What is the total calculated cost of FG-200 based on this BOM?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
90.00
The bill of materials (BOM) for FG-200 lists RM-300 (2 units at 20.00 each = 40.00) and RM-400 (1 unit at 50.00 = 50.00). The total calculated cost is 40.00 + 50.00 = 90.00, making option C correct. In Dynamics 365 Supply Chain Management, the BOM calculation rolls up costs from raw materials to the finished good based on the BOM structure and cost prices.
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.
Read the scenario before looking for a memorised answer.
✗
150.00
Why it's wrong here
150 is the standard cost, not the BOM calculated cost.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often misread the BOM quantities or incorrectly sum the costs (e.g., adding 20 + 50 = 70 and then multiplying by 2, or forgetting to multiply RM-300 by its quantity of 2), leading to wrong totals like 100.00 or 120.00.
Detailed technical explanation
How to think about this question
In Dynamics 365 Supply Chain Management, the BOM calculation engine uses the 'Costing version' and 'BOM calculation group' to determine cost roll-up, including considerations for scrap, lot size, and cost price updates. The calculation respects the BOM line quantities and unit costs, and can be performed for planned or standard costs. A real-world scenario is when a manufacturer uses BOM calculations to estimate product profitability and adjust pricing based on raw material cost fluctuations.
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: 90.00 — The bill of materials (BOM) for FG-200 lists RM-300 (2 units at 20.00 each = 40.00) and RM-400 (1 unit at 50.00 = 50.00). The total calculated cost is 40.00 + 50.00 = 90.00, making option C correct. In Dynamics 365 Supply Chain Management, the BOM calculation rolls up costs from raw materials to the finished good based on the BOM structure and cost prices.
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.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
This MB-920 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-920 exam.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.