Learn how to set up inventory costing versions in Microsoft Dynamics 365 Finance to support diverse costing methodologies, automate cost allocation, and ensure accurate financial reporting.
Table of Contents
Question
A manufacturing company is using Microsoft Dynamics 365 Finance to manage their inventory costs. They have multiple inventory costing methodologies in place and need to ensure accurate cost management across their diverse product lines. You need to configure the system to support different inventory costing versions that align with the company’s costing methodologies. This will ensure minimal manual intervention and high accuracy in cost reporting. What should you do?
A. Consolidate all product lines under a single inventory costing version to simplify the cost management process.
B. Disable inventory costing versions and rely on standard cost for all products to maintain uniformity.
C. Implement inventory costing versions specific to each product line and automate the cost allocation process using the costing sheet setup.
D. Manually adjust inventory costs for each product line at the end of each fiscal period.
Answer
C. Implement inventory costing versions specific to each product line and automate the cost allocation process using the costing sheet setup.
Explanation
Implementing inventory costing versions specific to each product line allows for accurate cost tracking and reporting that aligns with the company’s diverse costing methodologies. Automating the cost allocation process reduces manual errors and saves time. Consolidating all product lines under a single version, manually adjusting costs, or disabling costing versions would not provide the necessary accuracy and could lead to incorrect financial reporting.
Microsoft Dynamics 365 Finance Functional Consultant MB-310 certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the Microsoft Dynamics 365 Finance Functional Consultant MB-310 exam and earn Microsoft Dynamics 365 Finance Functional Consultant MB-310 certification.