Microsoft MB-920 Microsoft Dynamics 365 Fundamentals Finance and Operations Apps (ERP) Free Practice Test — 30 Questions
Exam Code: ERP
30 questions · Full explanations · No account required

Question 1

A manufacturing company is looking to integrate its existing supply chain management system with Microsoft Dynamics 365 Finance and Operations to enhance operational efficiency. The integration needs to ensure real-time data synchronization between the two systems, allowing for accurate inventory tracking and order processing. Which approach would best facilitate this integration while ensuring extensibility for future enhancements?

Accepted Answer

Utilizing Microsoft Power Platform to create custom connectors and automate workflows between the systems.

Question 2

In a manufacturing company utilizing an ERP system integrated with artificial intelligence (AI), the production manager is analyzing the impact of predictive maintenance on operational efficiency. The AI system predicts that a specific machine will require maintenance in 10 days, based on historical data and real-time sensor inputs. If the average downtime for maintenance is 4 hours and the production loss per hour is $500, what is the total estimated cost of production loss if the maintenance is not performed on time? Additionally, consider that the AI system also suggests that performing maintenance earlier could reduce downtime by 50%. What would be the total cost of production loss if the maintenance is performed early?

Accepted Answer

$2,000

Question 3

In a Dynamics 365 Finance and Operations environment, a user is navigating through the system to generate a financial report. They notice that the user interface allows them to customize the dashboard by adding various tiles that represent different data sources. If the user wants to ensure that the dashboard reflects real-time data updates from the financial module, which of the following actions should they take to optimize their dashboard effectively?

Accepted Answer

Configure the tiles to use the "Real-time data" setting for each data source.

Question 4

A manufacturing company is preparing to implement Microsoft Dynamics 365 Finance and Operations to enhance its regulatory compliance with industry standards. The company must ensure that its financial reporting adheres to the International Financial Reporting Standards (IFRS) while also complying with local tax regulations. Given the complexities of these requirements, which approach should the company prioritize to ensure that its financial data is both accurate and compliant across different jurisdictions?

Accepted Answer

Implement a centralized financial reporting system that integrates IFRS and local tax regulations, allowing for real-time updates and adjustments based on regulatory changes.

Question 5

In a manufacturing company using Microsoft Dynamics 365, the finance team is tasked with creating a personal dashboard to monitor key performance indicators (KPIs) related to production efficiency. They want to include metrics such as production output, defect rates, and machine utilization. If the finance team decides to set a target for production output at 10,000 units per month, and they currently produce an average of 8,500 units, what percentage of the target are they currently achieving? Additionally, if they aim to reduce defect rates from 5% to 2% over the next quarter, what is the percentage reduction in defect rates they are targeting?

Accepted Answer

85% achievement of production target and 60% reduction in defect rates

Question 6

A multinational corporation is evaluating its compliance with the General Data Protection Regulation (GDPR) as it pertains to the processing of personal data across its various subsidiaries in Europe. The company has implemented a centralized data management system that collects and processes customer data from all its branches. However, it has come to light that one of the subsidiaries has been storing customer data without obtaining explicit consent, which is a requirement under GDPR. What is the most appropriate course of action for the corporation to ensure compliance and mitigate potential penalties?

Accepted Answer

Conduct a comprehensive audit of all subsidiaries to identify and rectify any non-compliance issues, ensuring that explicit consent is obtained for all personal data processing activities.

Question 7

A manufacturing company is preparing its annual budget and needs to allocate funds for various departments. The finance team estimates that the total budget for the upcoming year will be $1,200,000. They plan to allocate 40% of the budget to production, 25% to marketing, 15% to research and development, and the remaining amount to administrative expenses. If the company decides to increase the marketing budget by 10% after the initial allocation, what will be the new total budget allocated to marketing?

Accepted Answer

$330,000

Question 8

A company is evaluating its compensation management strategy to ensure it aligns with its overall business objectives and employee satisfaction. The HR manager is tasked with analyzing the total compensation package, which includes base salary, bonuses, and benefits. If the base salary for a position is $70,000, the annual bonus is set at 10% of the base salary, and the benefits package is valued at $15,000, what is the total annual compensation for this position? Additionally, if the company decides to increase the base salary by 5% and the bonus percentage remains the same, what will be the new total annual compensation?

Accepted Answer

$90,500

Question 9

A manufacturing company is planning to upgrade its Dynamics 365 Finance and Operations system to the latest version. The IT manager is evaluating the potential impacts of this upgrade on existing customizations and integrations. Which of the following considerations should be prioritized to ensure a smooth transition while minimizing disruptions to business operations?

Accepted Answer

Assessing the compatibility of existing customizations with the new version and planning for necessary adjustments or re-implementations.

Question 10

A manufacturing company is planning to migrate its legacy ERP system data to Microsoft Dynamics 365 Finance and Operations. The data includes customer information, inventory levels, and financial records. The IT team is considering various data migration strategies to ensure data integrity and minimize downtime during the transition. Which strategy would best facilitate a smooth migration while ensuring that the data remains consistent and accurate throughout the process?

Accepted Answer

Incremental data migration with validation checks at each stage

Question 11

A manufacturing company is analyzing its cash flow management to improve liquidity. The company has projected the following cash inflows and outflows for the next quarter: Cash inflows from sales are expected to be $150,000, while cash outflows for operating expenses are projected at $90,000. Additionally, the company plans to invest $30,000 in new equipment and expects to receive $10,000 from the sale of an old asset. What will be the net cash flow for the quarter, and how should the company interpret this figure in terms of its cash flow management strategy?

Accepted Answer

$40,000 net cash inflow, indicating a positive cash flow position that can support future investments and operational stability.

Question 12

A manufacturing company is analyzing its inventory management practices to optimize its supply chain. The company has a total annual demand of 10,000 units for a specific product. The cost to place an order is $50, and the holding cost per unit per year is $2. The company is considering implementing the Economic Order Quantity (EOQ) model to minimize total inventory costs. What is the optimal order quantity that the company should use to minimize its total inventory costs?

Accepted Answer

500 units

Question 13

A company is evaluating its payroll management system to ensure compliance with local labor laws and to optimize its payroll processing efficiency. The payroll manager needs to calculate the total payroll cost for a month, which includes gross salaries, employer contributions to social security, and health insurance. If the total gross salaries for the month amount to $50,000, the employer\'s contribution to social security is 6.2% of the gross salaries, and the health insurance contribution is a flat rate of $1,200, what is the total payroll cost for the month?

Accepted Answer

$58,200

Question 14

A manufacturing company is considering the acquisition of a new piece of machinery to enhance its production capabilities. The machinery costs $150,000 and is expected to have a useful life of 10 years with a salvage value of $30,000. The company anticipates that the machinery will generate additional cash flows of $25,000 per year. If the company\'s required rate of return is 8%, should the company proceed with the acquisition based on the Net Present Value (NPV) method?

Accepted Answer

Yes, the NPV is positive.

Question 15

In a manufacturing company, the management team is setting goals for the upcoming fiscal year. They aim to increase production efficiency by 20% while reducing operational costs by 15%. If the current production efficiency is measured at 80 units per hour and the current operational costs are $200,000, what should be the target production efficiency and the target operational costs for the next fiscal year?

Accepted Answer

Target production efficiency: 96 units per hour; Target operational costs: $170,000

Question 16

A manufacturing company is analyzing its production efficiency using Microsoft Dynamics 365. They have collected data on the number of units produced, the total hours worked, and the total costs incurred. The company produced 1,200 units in a week, worked 300 hours, and incurred total costs of $15,000. To evaluate their efficiency, they want to calculate the cost per unit produced and the labor productivity in terms of units produced per hour. What are the correct calculations for cost per unit and labor productivity?

Accepted Answer

Cost per unit: $12.50; Labor productivity: 4 units/hour

Question 17

In a manufacturing company using Microsoft Dynamics 365, the finance team is tasked with creating a personal dashboard to monitor key performance indicators (KPIs) related to production efficiency and cost management. The dashboard must include visualizations for production output, operational costs, and variance analysis. Given the need for real-time data updates and user-specific customization, which approach should the finance team take to ensure the dashboard meets these requirements effectively?

Accepted Answer

Utilize Power BI integration to create dynamic reports that pull real-time data from Dynamics 365 and allow for user-specific filters and visualizations.

Question 18

A manufacturing company is planning to implement a new Enterprise Resource Planning (ERP) system to streamline its operations. As part of the implementation lifecycle, the project manager needs to assess the current business processes and identify areas for improvement. Which of the following steps should be prioritized during the initial phase of the ERP implementation to ensure a successful transition?

Accepted Answer

Conducting a thorough business process analysis to identify inefficiencies and areas for automation

Question 19

In a software development project for a financial services company, the team is deciding between Agile and Waterfall methodologies. The project involves developing a new customer relationship management (CRM) system that must adapt to changing regulatory requirements and user feedback throughout its lifecycle. Given the nature of the project, which methodology would be most suitable for ensuring flexibility and responsiveness to change, while also allowing for iterative testing and feedback incorporation?

Accepted Answer

Agile

Question 20

A manufacturing company is evaluating the disposal of a piece of machinery that has been in use for five years. The original cost of the machinery was $50,000, and it has a useful life of 10 years with a salvage value of $5,000. The company has decided to sell the machinery for $20,000. What is the gain or loss on the disposal of the machinery, and how does this impact the company\'s financial statements?

Accepted Answer

The company realizes a gain of $5,000 on the disposal, which will increase net income.

Question 21

A manufacturing company is looking to streamline its operations by integrating Microsoft Dynamics 365 Finance and Operations with Microsoft Power BI for enhanced reporting and analytics. The company wants to ensure that real-time data from their ERP system is accurately reflected in their Power BI dashboards. Which approach should the company take to achieve seamless integration and ensure data consistency across both platforms?

Accepted Answer

Utilize the Common Data Service (CDS) to synchronize data between Dynamics 365 and Power BI, ensuring that all entities are properly mapped and updated in real-time.

Question 22

A manufacturing company has recently implemented an automated invoicing system within Microsoft Dynamics 365. The system is designed to generate invoices based on sales orders. A sales order for 100 units of a product is placed at a unit price of $50. The company applies a discount of 10% for orders exceeding 50 units. Additionally, a sales tax of 8% is applicable on the total amount after the discount. What will be the total amount due on the invoice after applying the discount and sales tax?

Accepted Answer

$4400

Question 23

A multinational corporation is evaluating its compliance with financial regulations across different jurisdictions. The company has operations in the United States, the European Union, and Asia. Each region has distinct financial reporting requirements and regulations. The CFO is particularly concerned about the implications of the Sarbanes-Oxley Act (SOX) in the U.S. and the General Data Protection Regulation (GDPR) in the EU. Given these considerations, which of the following statements best reflects the relationship between financial regulations and corporate governance in this context?

Accepted Answer

Financial regulations like SOX enhance corporate governance by mandating transparency and accountability in financial reporting, while GDPR emphasizes data protection, indirectly influencing financial practices through compliance costs and risk management strategies.

Question 24

A retail company is looking to enhance its data visualization capabilities by integrating Power BI with its Dynamics 365 Finance and Operations environment. The company wants to create a dashboard that displays sales performance metrics, including total sales, average order value, and sales by region. To achieve this, they need to ensure that the data from Dynamics 365 is accurately reflected in Power BI. Which of the following steps is crucial for ensuring that the data integration between Dynamics 365 and Power BI is effective and provides real-time insights?

Accepted Answer

Establishing a direct connection between Dynamics 365 and Power BI using the Common Data Service (CDS) to facilitate real-time data synchronization.

Question 25

A manufacturing company is evaluating its procurement categories to optimize its supply chain management. The company has identified three main categories: raw materials, components, and services. Each category has a different impact on the overall procurement strategy. If the company allocates 50% of its procurement budget to raw materials, 30% to components, and 20% to services, how should the company prioritize its procurement activities to ensure cost-effectiveness and efficiency? Additionally, consider the implications of supplier relationships and market volatility in each category.

Accepted Answer

Focus primarily on establishing long-term relationships with suppliers of raw materials due to their significant budget allocation and potential for price fluctuations.

Question 26

A manufacturing company is analyzing its supply chain performance and wants to determine the overall equipment effectiveness (OEE) of its production line. The company has recorded the following data over a week: the total production time is 120 hours, the actual production time is 90 hours, the total units produced are 1,800, and the ideal cycle time is 0.05 hours per unit. What is the OEE percentage for the production line, and how does it reflect on the efficiency of the supply chain?

Accepted Answer

0.75

Question 27

A manufacturing company is planning to upgrade its Dynamics 365 Finance and Operations environment to the latest version. The IT team has identified several key areas that need to be addressed during the upgrade process, including data migration, user training, and system integration. Which of the following considerations is most critical to ensure a successful upgrade while minimizing disruption to ongoing operations?

Accepted Answer

Conducting a thorough impact analysis to understand how the upgrade will affect existing workflows and processes

Question 28

A company is planning to migrate its on-premises ERP system to Azure to enhance scalability and reduce operational costs. They are considering using Azure Functions for their serverless architecture. Which of the following best describes the advantages of using Azure Functions in this scenario, particularly in terms of cost management and resource allocation?

Accepted Answer

Azure Functions automatically scale based on demand, allowing the company to pay only for the compute resources used during execution, which optimizes cost management and resource allocation.

Question 29

In a manufacturing company using Microsoft Dynamics 365, the finance team is tasked with creating a personal dashboard to monitor key performance indicators (KPIs) related to production efficiency. The dashboard needs to display metrics such as the average production time per unit, the total number of units produced, and the percentage of on-time deliveries. If the average production time per unit is 2.5 hours, the total number of units produced in a week is 400, and the on-time delivery rate is 92%, which of the following metrics should be prioritized on the dashboard to provide the most actionable insights for improving production efficiency?

Accepted Answer

Average production time per unit

Question 30

A company is planning to migrate its on-premises ERP system to Azure and is considering various Azure services to optimize its operations. They want to ensure high availability and disaster recovery for their applications. Which combination of Azure services would best support these requirements while minimizing downtime and ensuring data integrity during the migration process?

Accepted Answer

Azure Site Recovery and Azure Load Balancer

Microsoft MB-920 Microsoft Dynamics 365 Fundamentals Finance and Operations Apps (ERP) Free Practice Test — 30 Questions

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