Your company recently implemented a Dynamics 365 Supply Chain Management system. You are currently configuring costing methods for items in inventory. You need to make use of a method normally used…

The correct answer is B. FIFO. The requirement is to use costing method normally used for an item that has limited shelf life. FIFO has the principle costing of first in, first out. Likewise the item movement goes with it, the first IN must be the first OUT and makes the item with limited shelf life moves…

Implement inventory management

Question

Your company recently implemented a Dynamics 365 Supply Chain Management system. You are currently configuring costing methods for items in inventory. You need to make use of a method normally used for items that have a limited shelf life. Which of the following is the costing method you should use?

Options

AStandard
BFIFO
CAverage
DSpecific

How the community answered

(35 responses)

B
94% (33)
C
3% (1)
D
3% (1)

Explanation

The requirement is to use costing method normally used for an item that has limited shelf life. FIFO has the principle costing of first in, first out. Likewise the item movement goes with it, the first IN must be the first OUT and makes the item with limited shelf life moves out accordingly and not be rotten in the shelf. https://docs.microsoft.com/en-us/dynamics365/business-central/design-details-costing-methods

Topics

#FIFO#costing methods#inventory valuation#shelf life

Community Discussion

No community discussion yet for this question.

Full MB-330 Practice