Q:
A grocery store uses costing methods in Dynamics 365 Supply Chain Management to manage inventory.

The store makes several purchases of a specialty item throughout the fiscal year.

You need to price the item by using the mean cost per unit of all inventory purchases made during the period.

Which costing method should you use?

A first in, first out (FIFO)
B standard cost
C last in, first out date (LIFO Date)
D weighted average

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Answer: D

Explanation:

This item tests the candidate’s knowledge of the cost management methods available in Dynamics 365 Supply Chain Management to manage and track inventory costs, including standard and actual costs. The correct method of using the weighted average cost takes the average of the items that are received into inventory during the inventory closing process. First in, first out (FIFO) and last in, first out date (LIFO Date) are methods based on first and last receipt issuance respectfully. The standard costing method can support a standard cost inventory model for items, where the costing version has a set of standard cost records about items and manufacturing processes.

Describe costing methods - Training | Microsoft Learn

Exam MB-920: Microsoft Dynamics 365 Fundamentals (ERP) MCQ

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