Drag and Drop Question A process manufacturing company is implementing Dynamics 365 Supply Chain Management. The company will use multiple process manufacturing functionalities including…

The correct answer is none; per quantity. By-Product Burden Allocation Methods in D365 Supply Chain Management > Note: The specific scenario descriptions are missing from your question, but the correct answers are none (scenario 1) and per quantity (scenario 2). Here's a full breakdown of all methods and the reasoning…

Configure production prerequisites

Question

Drag and Drop Question A process manufacturing company is implementing Dynamics 365 Supply Chain Management. The company will use multiple process manufacturing functionalities including by-products. You need to configure by-product formula allocation methods. Which methods should you use? To answer, drag the appropriate by-product burden allocation methods to the correct scenarios. Each method may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content. NOTE: Each correct selection is worth one point Answer:

Exhibit

Answer Area

Drag items

percentrecyclednoneper quantity

Correct arrangement

none
per quantity

Explanation

By-Product Burden Allocation Methods in D365 Supply Chain Management

Note: The specific scenario descriptions are missing from your question, but the correct answers are none (scenario 1) and per quantity (scenario 2). Here's a full breakdown of all methods and the reasoning behind those placements.

The Four Allocation Methods

Method	What It Does
none	By-product is tracked but carries zero cost burden - no financial impact on formula cost
per quantity	Cost burden scales linearly with quantity produced of the by-product
percent	A fixed percentage of total formula cost is allocated to the by-product
recycled	By-product is fed back into the process, reducing the formula's overall cost

Why Each Answer Is Correct

Position 1 → `none`

Typical scenario: The by-product must be recorded for compliance or inventory tracking, but should not affect the cost of the main product.

Technical reason: Setting burden to none means the formula cost calculation ignores the by-product entirely. The system records the output without crediting or debiting any cost against the formula. This is appropriate when the by-product has negligible value or when cost neutrality is required.

Position 2 → `per quantity`

Typical scenario: The company wants to allocate a cost burden proportional to how much by-product is produced.

Technical reason: per quantity assigns a cost per unit of by-product output. As production volume increases, the burden increases proportionally. This is the standard method when the by-product has a consistent, measurable value relationship to its quantity.

Common Mistakes & Misconceptions

Confusing recycled with none: recycled actively reduces formula cost (the by-product re-enters the process as a material credit). none simply ignores cost - it does not reduce anything.
Using percent when quantity is the driver: percent is for scenarios where the by-product should absorb a fixed share of total formula cost regardless of volume - not the same as scaling with quantity.
Assuming none means the by-product isn't tracked: It still appears in the formula and on production orders; only the financial burden is zero.
Overlooking that methods can repeat: The question states each method may be used more than once, so don't assume each scenario requires a unique method.

Topics

#by-products#formula allocation methods#process manufacturing#burden allocation

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