I85PREP
⌘ K
MB-920 study materials
MB-920 study resources

MB-920 practice questions

One question at a time. Build your MB-920 understanding.

First 50 of 200 questions. Each one lists the choices, the correct answer, and an explanation. The checker at the top of this page saves progress in this browser when it is available.

Continue in the practice tool above to load more questions, 50 at a time.

Question 1Describe Dynamics 365 Supply Chain Management

A company wants to record the physical receipt of purchased raw materials before the vendor invoice arrives. Which Supply Chain Management process is designed for this requirement?

  1. Inventory closing and adjustment
  2. Vendor invoice posting against a purchase order
  3. Product receipt posting against a purchase order Correct answer.
  4. Sales order confirmation

Explanation

A product receipt records the physical arrival of goods and creates an on-hand transaction and an accrued liability, independent of the invoice. Vendor invoice posting records the financial obligation and matches it to the receipt. Posting the receipt first lets receiving and accounting happen at different times.

Question 2Describe Dynamics 365 Supply Chain Management

Which Supply Chain Management module holds the released product master, including item model group and storage dimension group assignments?

  1. Warehouse management
  2. Inventory management
  3. Procurement and sourcing
  4. Product information management Correct answer.

Explanation

Product information management is where products and released products are created and maintained, including item model groups and tracking and storage dimension groups. The other modules consume these products in their own transactions. Configuration of the product itself belongs to product information management.

Question 3Describe Dynamics 365 Supply Chain Management

A planner needs to generate planned purchase orders automatically from demand. Which capability performs this?

  1. Master planning Correct answer.
  2. Cost accounting
  3. Inventory journal posting
  4. Demand forecasting

Explanation

Master planning nets demand against supply and on-hand inventory and generates planned orders, including planned purchase orders, that can be firmed. Demand forecasting supplies input data but does not itself create planned orders. Firming converts a planned order into an actual purchase order.

Question 4Describe Dynamics 365 Supply Chain Management

Which feature lets a company define the sequence of operations and the resources required to manufacture an item?

  1. Kanban rule
  2. Bill of materials
  3. Route Correct answer.
  4. Formula

Explanation

A route defines the sequence of operations and the resource requirements needed to produce an item. The bill of materials defines component quantities, while a formula is used for process manufacturing. Routes are attached to released products for production orders.

Question 5Describe Dynamics 365 Supply Chain Management

Which Supply Chain Management module provides tools for planning and executing outbound warehouse work such as picking and packing?

  1. Sales and marketing
  2. Transportation management
  3. Warehouse management Correct answer.
  4. Procurement and sourcing

Explanation

Warehouse management handles warehouse work creation, wave processing, picking, packing, and location-directed movement. Transportation management plans freight and carrier activity rather than internal warehouse work. Sales and marketing creates the demand that triggers outbound work.

Question 6Describe Dynamics 365 Supply Chain Management

A company must track inventory by both site and warehouse. Which configuration controls this behavior on a released product?

  1. Item model group
  2. Tracking dimension group
  3. Unit conversion
  4. Storage dimension group Correct answer.

Explanation

The storage dimension group determines which physical storage dimensions, such as site, warehouse, and location, are active for an item. The tracking dimension group controls batch and serial tracking instead. The item model group governs costing and inventory policy behavior.

Question 7Describe Dynamics 365 Supply Chain Management

Which document in the procurement process is created first when a buyer requests goods from a vendor?

  1. Vendor invoice
  2. Purchase requisition Correct answer.
  3. Purchase order
  4. Product receipt

Explanation

A purchase requisition is the initial internal request for goods or services and can be converted into a purchase order after review or approval. The purchase order is the formal commitment to the vendor. Receipts and invoices occur later in the cycle.

Question 8Describe Dynamics 365 Supply Chain Management

Which module in Supply Chain Management is used to plan and manage transportation rates, routes, and carrier settlements?

  1. Warehouse management
  2. Inventory management
  3. Asset management
  4. Transportation management Correct answer.

Explanation

Transportation management provides freight rating, route planning, load building, and carrier invoice settlement. Warehouse management deals with internal warehouse execution. Inventory management tracks balances and adjustments. Asset management tracks equipment maintenance.

Question 9Describe Dynamics 365 Supply Chain Management

A production supervisor needs to report the consumption of raw materials and the completion of finished goods for a production order. Which journal types are used for these two postings?

  1. Movement journal for consumption and adjustment journal for completion
  2. Bill of materials journal for consumption and inventory closing for completion
  3. Picking list journal for consumption and report as finished journal for completion Correct answer.
  4. Counting journal for consumption and transfer journal for completion

Explanation

The picking list journal registers material consumption against a production order, and the report as finished journal records the completed quantity of the finished item into inventory. Counting, transfer, and adjustment journals are general inventory journals not tied to production completion. Inventory closing is a period-end costing process.

Question 10Describe Dynamics 365 Supply Chain Management

A company uses process manufacturing and needs to define ingredient quantities with a scalable batch size. Which construct should be configured?

  1. Formula with a formula version Correct answer.
  2. Route with operation relationships
  3. Kanban with a fixed quantity
  4. Bill of materials with a fixed quantity

Explanation

In process manufacturing, a formula defines ingredients and co-products, and a formula version allows scaling to a batch size and activation by site or date. A bill of materials is used for discrete manufacturing. Routes define operations rather than ingredient quantities.

Question 11Describe Dynamics 365 Supply Chain Management

A warehouse manager wants the system to direct pickers to specific locations and generate work for outbound orders. Which two capabilities work together to achieve this? (Choose the best answer.)

  1. Item model groups and cost groups
  2. Vendor groups and procurement categories
  3. Coverage groups and master planning
  4. Wave templates and location directives Correct answer.

Explanation

Wave templates determine how outbound orders are grouped and released to the warehouse, and location directives determine where work is directed. Together they enable location-directed picking and work generation. Item model groups and coverage groups affect costing and planning, not warehouse work.

Question 12Describe Dynamics 365 Supply Chain Management

A planner notices that master planning is generating planned orders even though sufficient on-hand inventory exists. Which setting is most likely responsible?

  1. The storage dimension group includes location
  2. The item model group uses standard cost
  3. The coverage group has a positive minimum inventory keyed incorrectly Correct answer.
  4. The tracking dimension group includes batch numbers

Explanation

Coverage groups define minimum and maximum inventory levels; an incorrectly high minimum keyed in the coverage group forces replenishment even when stock exists. Costing method and tracking or storage dimensions do not drive net requirement generation. Reviewing coverage settings is the correct diagnostic step.

Question 13Describe Dynamics 365 Supply Chain Management

A company needs to record scrap that occurs during a production operation and attribute it to the operation. Which approach is appropriate?

  1. Create a new released product for the scrap
  2. Define scrap on the route operation or BOM line and report it during production Correct answer.
  3. Reverse the production order
  4. Post an inventory adjustment journal after production

Explanation

Scrap can be defined on the bill of materials line or the route operation so that it is accounted for during production reporting and cost estimation. Posting a general adjustment afterwards loses the link to the operation. Creating a separate product or reversing the order is not the intended mechanism.

Question 14Describe Dynamics 365 Supply Chain Management

A vendor invoice does not match the received quantity on a purchase order. Which feature helps a controller investigate and resolve the discrepancy before posting?

  1. Warehouse wave processing
  2. Invoice matching policy and pending vendor invoice review Correct answer.
  3. Inventory closing and adjustment
  4. Master planning regeneration

Explanation

Invoice matching policies compare invoice price and quantity to the purchase order and product receipt, and pending vendor invoices can be reviewed before posting. Inventory closing and master planning do not address invoice discrepancies. Wave processing is unrelated to payables matching.

Question 15Describe Dynamics 365 Supply Chain Management

A company wants to enable batch and serial number tracking for a specific item. Which configuration element must be set on the released product?

  1. Inventory unit
  2. Item model group
  3. Storage dimension group
  4. Tracking dimension group Correct answer.

Explanation

The tracking dimension group activates batch and serial dimensions for an item and controls whether they are physically and financially updated. The storage dimension group controls site, warehouse, and location instead. The item model group controls costing and inventory policy.

Question 16Describe Dynamics 365 Supply Chain Management

Which Supply Chain Management capability supports creating and managing bills of lading and shipping documents for outbound loads?

  1. Master planning
  2. Procurement and sourcing
  3. Product information management
  4. Transportation management Correct answer.

Explanation

Transportation management handles loads, carriers, and shipping documents such as bills of lading for outbound freight. Product information management defines products, procurement covers inbound purchasing, and master planning generates supply. Shipping documentation is a transportation function.

Question 17Describe Dynamics 365 Supply Chain Management

A company wants to reserve inventory for a specific sales order so it cannot be allocated to other demand. Which action should be taken?

  1. Run master planning
  2. Create a transfer journal
  3. Post an inventory adjustment journal
  4. Reserve the inventory against the sales order Correct answer.

Explanation

Reserving inventory against a sales order ties on-hand stock to that order so it is protected from other demand. Adjustment and transfer journals change quantities or locations rather than reserving stock. Master planning generates supply but does not reserve specific on-hand inventory.

Question 18Describe Dynamics 365 Supply Chain Management

A company needs to model a production environment where the same operation can run on alternative machines with different capacities. Which configuration supports this?

  1. Coverage group with safety stock
  2. Item model group with standard cost
  3. Route operations with resource requirements and capability assignments Correct answer.
  4. Vendor group with trade agreements

Explanation

Route operations can specify resource requirements, and resources can be assigned capabilities so that alternative machines satisfying the same capability can be scheduled. Costing, coverage, and vendor settings do not model alternative machine capacity. Capability-based assignment enables flexible scheduling.

Question 19Describe Dynamics 365 Supply Chain Management

Which statement best describes the purpose of a coverage group in master planning?

  1. It defines the costing method used to value inventory
  2. It defines the warehouse locations where picking occurs
  3. It defines the vendor payment terms
  4. It defines replenishment settings such as coverage code, lead time, and safety stock for an item Correct answer.

Explanation

A coverage group holds item coverage settings used by master planning, including coverage code, lead time, safety margins, and negative days. Costing method belongs to the item model group, warehouse locations belong to warehouse configuration, and payment terms belong to vendors. Coverage groups therefore drive replenishment behavior.

Question 20Describe Dynamics 365 Supply Chain Management

A company needs to plan inbound freight and consolidate multiple purchase orders into a single load. Which module and concept apply?

  1. Inventory management with counting journals
  2. Procurement and sourcing with purchase requisitions
  3. Transportation management with load planning Correct answer.
  4. Warehouse management with wave templates

Explanation

Transportation management supports load planning, where multiple order lines can be consolidated into a load for efficient freight movement. Wave templates organize outbound warehouse work, requisitions capture demand, and counting journals adjust stock. Load consolidation is a transportation concept.

Question 21Describe Dynamics 365 Supply Chain Management

A company wants to apply a trade agreement price automatically when creating a purchase order for a specific vendor and item. Which configuration supports this?

  1. An inventory closing adjustment
  2. A coverage group with a minimum inventory setting
  3. A trade agreement journal with the vendor and item combination and a validity period Correct answer.
  4. A tracking dimension group with serial numbers

Explanation

Trade agreements define price or discount agreements for combinations such as vendor and item with effective dates, and the agreed price is applied when the purchase order is created. Coverage groups affect planning, tracking dimensions affect traceability, and inventory closing affects valuation. Trade agreements automate pricing.

Question 22Describe Dynamics 365 Supply Chain Management

During master planning, a planner observes that planned orders are created for an item even though a firm planned order already exists. Which concept explains how firm planned orders interact with planning?

  1. Firm planned orders are converted to sales orders during planning
  2. Firm planned orders are only used for process manufacturing
  3. Firm planned orders are ignored by master planning and deleted automatically
  4. Firm planned orders are treated as fixed supply and are not overwritten by planning Correct answer.

Explanation

Firming a planned order creates a firm planned order that master planning treats as fixed supply, so it is respected rather than regenerated. Planning may still generate additional orders if net requirements remain after considering the firm supply. Firm planned orders are not deleted automatically and are not limited to process manufacturing.

Question 23Describe Dynamics 365 Supply Chain Management

A company wants to value inventory using standard cost and analyze variances between standard and actual production costs. Which combination of features supports this analysis?

  1. Storage dimension group and location directives
  2. Wave templates and load planning
  3. Item model group with standard cost and production costing variances Correct answer.
  4. Vendor groups and trade agreements

Explanation

Setting the item model group to standard cost establishes the standard valuation, and production costing collects variances between standard and actual costs for analysis. Storage dimensions, wave templates, and vendor groups address physical handling and purchasing rather than cost variance analysis. Variance reporting depends on the costing configuration.

Question 24Describe Dynamics 365 Supply Chain Management

A warehouse uses location directives, but outbound work is generated without respecting the intended picking sequence. Which configuration area should be reviewed first?

  1. Coverage group safety stock settings
  2. Vendor trade agreement validity dates
  3. Location directive actions and work template sequence settings Correct answer.
  4. Item model group costing settings

Explanation

Location directives determine the locations and the actions used for put and pick work, and work templates define the sequence of work lines. Incorrect directive actions or template sequencing leads to work that ignores the intended picking order. Costing, coverage, and trade agreement settings do not control work sequencing.

Question 25Describe Dynamics 365 Supply Chain Management

A company produces a product with co-products and by-products and needs to allocate joint production costs. Which construct in process manufacturing supports this?

  1. A formula with co-products and by-products configured for cost allocation Correct answer.
  2. A coverage group with safety stock
  3. A trade agreement with a discount
  4. A route with operation scrap only

Explanation

In process manufacturing, formulas can include co-products and by-products, and cost allocation methods distribute joint production costs among them. Routes with scrap address operation losses, coverage groups address replenishment, and trade agreements address pricing. Co-product and by-product configuration is the correct mechanism.

Question 26Describe Dynamics 365 Supply Chain Management

A company wants to classify items for financial posting and inventory valuation without creating a separate item for each variation. Which Supply Chain Management concept groups items that share the same posting and costing behavior?

  1. Item model group Correct answer.
  2. Tracking dimension group
  3. Unit conversion class
  4. Storage dimension group

Explanation

An item model group controls the inventory posting profiles and the costing method (such as standard cost or weighted average) applied to a released product. Items that share posting and valuation behavior can be assigned to the same model group instead of duplicating items.

Question 27Describe Dynamics 365 Supply Chain Management

A buyer needs to purchase the same item from three vendors and compare quoted prices over time. Which Supply Chain Management object should the buyer use to record the vendors' responses?

  1. Purchase requisition
  2. Request for quotation Correct answer.
  3. Purchase order
  4. Vendor invoice journal

Explanation

A request for quotation (RFQ) is sent to multiple vendors so they can reply with prices and lead times, and the replies can be compared and accepted in the system. Accepting an RFQ reply can generate a purchase order for the winning vendor.

Question 28Describe Dynamics 365 Supply Chain Management

A distribution company wants to calculate how much safety stock to hold for an item based on demand variability and a target service level. Which master planning setting drives this calculation?

  1. Coverage code
  2. Negative days
  3. Safety margin percentage
  4. Coverage group minimum and maximum Correct answer.

Explanation

A coverage group holds the minimum and maximum coverage settings, and when minimum and maximum keys are used the system can compute safety stock from demand variability and the specified service level. The coverage group is assigned to the item through item coverage.

Question 29Describe Dynamics 365 Supply Chain Management

A manufacturer wants to define the sequence of operations and the resources required to build a finished good. Which Supply Chain Management construct holds this definition?

  1. Formula
  2. Production flow
  3. Route Correct answer.
  4. Bill of materials

Explanation

A route defines the sequence of operations, the resources or resource groups that perform them, and the time required. It is paired with a bill of materials, which defines the components rather than the operations.

Question 30Describe Dynamics 365 Supply Chain Management

A warehouse supervisor wants to hold received goods in a designated area until quality inspection is completed before they become available to production. Which configuration supports this?

  1. Quarantine order with an inspection location Correct answer.
  2. Negative inventory policy
  3. Cycle counting plan
  4. Inventory blocking by item group

Explanation

A quarantine order moves received items to a quarantine warehouse or location where they are unavailable for normal use until inspection results are recorded and the order is ended. This keeps uninspected stock separate from available inventory.

Question 31Describe Dynamics 365 Supply Chain Management

A company wants to define how much of a component is consumed per finished unit and allow for a fixed scrap percentage. Which bill of materials line field controls the scrap allowance?

  1. Constant quantity
  2. Scrap percentage on the BOM line Correct answer.
  3. Flushing principle
  4. Yield percentage on the route operation

Explanation

The scrap percentage on a BOM line increases the component quantity that the system expects to consume to account for expected losses. The route operation yield percentage reduces output rather than adjusting component consumption.

Question 32Describe Dynamics 365 Supply Chain Management

A planner needs to see suggested transfers between warehouses to balance stock before confirming any orders. Which master planning output shows these suggestions?

  1. Kanban cards
  2. Journals
  3. Planned transfer orders Correct answer.
  4. Firm planned orders

Explanation

Master planning generates planned transfer orders when inventory should move between warehouses to satisfy demand. Planned orders are suggestions and do not affect on-hand inventory until they are firmed and processed.

Question 33Describe Dynamics 365 Supply Chain Management

A company wants to sell a product in a set with other products at a single price. Which Supply Chain Management feature should be configured?

  1. Kit item
  2. Product variant
  3. Trade agreement
  4. Product bundle Correct answer.

Explanation

A product bundle groups products sold together at a combined price, and the components are exploded when the order is processed. This differs from a kit, which is assembled at the time of sale or shipment.

Question 34Describe Dynamics 365 Supply Chain Management

A company needs to charge customers different prices for the same item depending on the order quantity. Which feature should be configured?

  1. Charge code
  2. Trade agreement with quantity-based price breaks Correct answer.
  3. Discount group
  4. Price adjustment

Explanation

Trade agreements allow price and discount agreements to be defined with quantity breakpoints so larger order quantities receive different prices. The applicable agreement is applied automatically when the sales order line matches the criteria.

Question 35Describe Dynamics 365 Supply Chain Management

A company wants to consolidate several sales orders going to the same customer into one shipment. Which Supply Chain Management workbench supports this?

  1. Transportation tender
  2. Load planning workbench Correct answer.
  3. Shipment consolidation
  4. Warehouse wave template

Explanation

The outbound load planning workbench provides an interface for consolidating multiple sales orders into one shipment when the orders meet the consolidation requirements. Shipment consolidation is the underlying capability, while the workbench is where the planner performs the operation.

Question 36Describe Dynamics 365 Supply Chain Management

A company wants to track the cost of producing an item by accumulating material, labor, and overhead costs against a production order. Which costing approach does this describe?

  1. Job order costing on production orders Correct answer.
  2. Retail method
  3. Moving average costing
  4. Standard costing

Explanation

Production order costing accumulates actual material consumption, route operation hours, and overhead against the order to determine the cost of the finished quantity. The resulting cost is compared with the item's inventory cost method.

Question 37Describe Dynamics 365 Supply Chain Management

A warehouse manager wants to define a rule that directs put-away of received goods to a specific zone based on item attributes. Which configuration element is used?

  1. Work template
  2. Wave template
  3. Work pool
  4. Location directive Correct answer.

Explanation

A location directive contains the logic that determines which location receives put-away or picking work based on queries and sequences. It is attached to a work template order type and work type.

Question 38Describe Dynamics 365 Supply Chain Management

A company wants to replenish warehouse locations from bulk storage when the picking location falls below a threshold. Which warehouse management feature should be used?

  1. Cross docking
  2. Min/max replenishment Correct answer.
  3. Wave template
  4. Cycle counting

Explanation

Min/max replenishment monitors a picking location and generates replenishment work to move stock from bulk storage when the quantity drops below the minimum. The maximum setting defines the target quantity after replenishment.

Question 39Describe Dynamics 365 Supply Chain Management

A company needs to record the receipt of goods against a purchase order before the vendor invoice arrives. Which document should be posted?

  1. Product receipt Correct answer.
  2. Vendor invoice
  3. Invoice journal
  4. Purchase requisition

Explanation

A product receipt records the physical arrival of goods against the purchase order and updates on-hand inventory before invoicing. The vendor invoice is posted later and matched to the receipt.

Question 40Describe Dynamics 365 Supply Chain Management

A company wants to assign a specific batch of an item to a sales order line so that no other order can consume it. Which action accomplishes this?

  1. Set the item's tracking dimension group to serial only
  2. Reserve the batch on the sales order line Correct answer.
  3. Create a quarantine order
  4. Mark the batch as blocked

Explanation

Reserving inventory on a sales order line ties specific batch dimensions to that order so other demand cannot consume them. Reservations can be made automatically or manually against on-hand batches.

Question 41Describe Dynamics 365 Supply Chain Management

A company wants to model a production process where the same finished product can be produced through different operation sequences depending on the resource available. Which concept supports this?

  1. Formula version
  2. Production flow version
  3. Bill of materials version
  4. Route version with multiple route numbers Correct answer.

Explanation

Route versions allow multiple routes to be defined and activated for an item, and the system selects the applicable route based on the version dates and site. This lets alternative operation sequences exist for the same product.

Question 42Describe Dynamics 365 Supply Chain Management

A company wants to sell items in different units of measure, such as each and case, and have the system convert between them. Which configuration is required?

  1. Storage dimension group assignment
  2. Item model group assignment
  3. Tracking dimension group assignment
  4. Unit conversion on the released product Correct answer.

Explanation

Unit conversions defined for the released product allow quantities to be entered in one unit and converted to the inventory unit. The conversion factor links the units so pricing and inventory remain consistent.

Question 43Describe Dynamics 365 Supply Chain Management

A company wants to plan production of an item with a fixed batch size and a minimum order quantity that master planning should respect. Which settings drive this?

  1. Item model group costing method
  2. Warehouse location directive
  3. Vendor lead time only
  4. Coverage group minimum and maximum with a multiple Correct answer.

Explanation

The coverage group minimum and maximum define the replenishment thresholds, and the multiple setting rounds planned order quantities to a batch size. This ensures planned orders respect minimum and multiple constraints.

Question 44Describe Dynamics 365 Supply Chain Management

A company needs to track the cost of goods sold and inventory value for items using the weighted average method. Which Supply Chain Management module primarily supports this?

  1. Master planning
  2. Procurement and sourcing
  3. Inventory management Correct answer.
  4. Transportation management

Explanation

Inventory management maintains on-hand quantities and inventory valuation, including the weighted average cost calculation on receipts. Costing and valuation postings are managed through inventory and item model settings.

Question 45Describe Dynamics 365 Supply Chain Management

A company wants to define which warehouse locations are valid for a specific item so that put-away only considers those locations. Which configuration achieves this?

  1. Item model group
  2. Location directives with item query criteria Correct answer.
  3. Vendor lead time
  4. Tracking dimension group

Explanation

Location directives can include query criteria on the item so that only matching locations are considered for put-away or picking. This restricts movement to locations appropriate for the item.

Question 46Describe Dynamics 365 Supply Chain Management

A company wants to use lean manufacturing principles and define activities performed in work cells. Which construct should be configured?

  1. Production flow Correct answer.
  2. Formula
  3. Route
  4. Bill of materials

Explanation

Production flows model lean manufacturing activities and the sequence of work cells that perform them. They can be activated and used to create kanban-based replenishment.

Question 47Describe Dynamics 365 Supply Chain Management

A company wants to calculate freight charges for outbound loads based on weight and distance. Which Transportation management configuration is required?

  1. Location directive
  2. Wave template only
  3. Rate engine and rate base Correct answer.
  4. Load template only

Explanation

The transportation rate engine uses rate bases and rate definitions to calculate freight charges from factors such as weight and distance. Rate bases define the calculation method used by the rate engine.

Question 48Describe Dynamics 365 Supply Chain Management

A company wants to record and track the serial numbers of items sold to customers for warranty purposes. Which configuration element must be enabled?

  1. Serial number tracking in the tracking dimension group Correct answer.
  2. Storage dimension group
  3. Item model group
  4. Coverage group

Explanation

Serial number tracking is enabled through the tracking dimension group assigned to the item, which makes serial dimensions active. This allows individual units to be registered and traced through sales and service.

Question 49Describe Dynamics 365 Supply Chain Management

A company wants to plan and manage inbound and outbound transportation, including carrier selection and appointment scheduling. Which module provides these capabilities?

  1. Transportation management Correct answer.
  2. Master planning
  3. Warehouse management
  4. Procurement and sourcing

Explanation

Transportation management provides carrier management, rate calculation, load planning, and appointment scheduling for inbound and outbound freight. It integrates with warehouse and procurement processes.

Question 50Describe Dynamics 365 Supply Chain Management

A company wants to analyze variances between the standard cost of a produced item and the actual production cost. Which approach should be used?

  1. Standard cost with production variances Correct answer.
  2. Moving average with inventory adjustment
  3. FIFO with cycle counting
  4. Weighted average with trade agreements

Explanation

Standard costing compares the standard cost of a production order with the actual accumulated costs to produce material, labor, and overhead variances. This lets controllers investigate where actual costs deviated from standard.