Practice Assessment Practice Assessment Question #25467
Single Choice Moderate

Q

You use Dynamics 365 supply Chain Management.

You have an item that uses a Standard cost inventory model.

You run the Inventory Valuation report and discover that the item is being valued at a cost that differs from what you expected.

You need to ensure that the item cost is configured correctly.

What should you do?

ID: #25467 Practice Assessment 8 views
Question Info
#25467Q ID
ModerateDifficulty
Practice AssessmentTopic

Choose the Best Option

Click any option to instantly check if you're correct.

  • A Set the item cost record for the item to Active.
  • B Set the item cost record for the released product to Active.
  • C Set the item cost record for the released product to Pending.
  • D Set the item cost record status for the item to Pending.
Correct Answer

Explanation

The correct solution is to set the item cost record to Active, because in the Standard cost model, only active cost records are applied in valuation and reporting. Pending costs can be entered and reviewed but do not affect inventory valuation until they are activated. Costs are maintained at the item level in the costing version, not directly on the released product record, so configuring them at the released product level does not change valuation. Therefore, ensuring the cost record is Active at the item level is required for the Inventory Valuation report to reflect the correct standard cost.

Prerequisites for standard costs - Training | Microsoft Learn

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