MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
Which TWO inventory costing methods are available in Dynamics 365 Supply Chain Management?
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
✓
FIFO
FIFO (First In, First Out) and Standard cost are both valid inventory costing methods in Dynamics 365 Supply Chain Management. FIFO assumes that the first items received are the first ones sold. Standard cost uses predetermined costs for items. Weighted average is also a valid method, but the question limits to two choices.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
LIFO
Why it's wrong here
LIFO is not supported in Dynamics 365 Supply Chain Management.
- ✓
FIFO
Why this is correct
FIFO is a supported inventory costing method.
- ✓
Standard cost
Why this is correct
Standard cost is a costing method but not an inventory costing method; it is a costing basis.
- ✗
Fixed cost
Why it's wrong here
Fixed cost is not an inventory costing method.
- ✗
Weighted average
Why it's wrong here
Weighted average is a supported inventory costing method.
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