MB-330 Implement Inventory and Asset Management Practice Question
A company uses standard cost for a purchased component. The purchasing manager reports that the purchase price variance on a recent purchase order was calculated against a cost that does not match the active standard cost shown on the released product. You need to determine why the variance used a different cost. What is the most likely cause?
⚠ Common exam trap
The trap here is assuming that activating a new standard cost retroactively updates variances on transactions that were already posted.
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
✓
The purchase order line was created before the pending standard cost was activated, so it used the previous active standard cost.
Standard cost variances are calculated at posting time using the active standard cost. A pending cost that has not been activated does not affect transactions, so a purchase order created before activation will post its receipt and variance against the prior active standard, which explains the mismatch the manager observed.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The vendor's invoice was matched to a different product receipt, causing the variance to be calculated against the invoice price instead of the standard cost.
Why it's wrong here
Invoice matching affects invoice price variance and charges, not the purchase price variance calculated at product receipt posting. The receipt posts at the active standard cost, and matching the invoice later compares the invoice price to that standard separately from the receipt-time variance.
- ✓
The purchase order line was created before the pending standard cost was activated, so it used the previous active standard cost.
Why this is correct
Purchase price variance is calculated against the active standard cost at the time the inventory transaction is posted. If the purchase order was created while a pending cost was not yet activated, the line carries the previous active standard. Activating the new cost later does not retroactively change existing posted variances.
- ✗
The item's cost group was changed, which automatically recalculated all historical variances.
Why it's wrong here
Cost groups classify costs for reporting and do not recalculate posted variances. Changing a cost group affects how future costs are aggregated in inventory value reports, but it does not alter the standard cost used on a posted purchase order line or the variance already calculated.
- ✗
The purchase order was posted with a quantity that exceeded the on-hand quantity, forcing the system to use a fallback cost.
Why it's wrong here
Quantity does not cause the system to substitute a different cost. Standard cost valuation uses the item's active standard regardless of quantity, and receiving more than expected simply posts the difference at the same standard, with no fallback cost mechanism for excess quantity.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
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