MB-330 Implement Inventory and Asset Management Practice Question
You are configuring inventory valuation for a company that uses Dynamics 365 Supply Chain Management. The company wants to use the 'Standard cost' valuation method for a manufactured item. You need to ensure that the standard cost is updated automatically when the bill of materials (BOM) calculation changes. Which configuration should you set up?
⚠ Common exam trap
The trap here is assuming that standard cost updates automatically when the BOM changes, when in fact a manual cost roll-up and activation are required.
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
✓
Set the item's 'Costing method' to 'Standard cost' and use the 'Cost roll-up' function to calculate and activate a new cost version when the BOM changes.
Standard cost valuation requires periodic cost roll-ups to update the standard cost based on the current BOM and routing. The cost roll-up function calculates the new cost, and you then activate the cost version to update the item's standard cost. This process is not automatic; it is initiated by the user when BOM changes occur.
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 the item's 'Costing method' to 'Standard cost' and use the 'Cost roll-up' function to calculate and activate a new cost version when the BOM changes.
Why this is correct
For standard cost items, the standard cost is maintained through cost versions. When the BOM changes, you must perform a cost roll-up to recalculate the standard cost, then activate the new cost version. This is a manual process, but it ensures the standard cost reflects the current BOM.
- ✗
Set the item's 'Costing method' to 'Standard cost' and enable the 'Automatic cost update' parameter in the Inventory and warehouse management parameters.
Why it's wrong here
There is no 'Automatic cost update' parameter in Inventory and warehouse management parameters. Standard cost updates are not automatic; they require a deliberate process such as a cost roll-up or a new cost version. Enabling a non-existent parameter would not achieve automatic updates.
- ✗
Set the item's 'Costing method' to 'Standard cost' and create a cost version with the 'Blocking' flag set to 'No' and the 'Cost roll-up' option enabled.
Why it's wrong here
Creating a cost version with a cost roll-up is part of the process, but the 'Blocking' flag controls whether the version can be activated. Setting it to 'No' allows activation, but it does not automatically update the standard cost when the BOM changes. Cost roll-up must be manually triggered.
- ✗
Set the item's 'Costing method' to 'Standard cost' and configure a cost roll-up policy that runs when the BOM is updated.
Why it's wrong here
There is no standard feature called 'cost roll-up policy' that automatically triggers on BOM updates. Cost roll-ups are initiated manually through the cost version or the 'Cost roll-up' function. While you can schedule batch jobs, they do not automatically detect BOM changes.
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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
This MB-330 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-330 exam.