Microsoft Dynamics 365 Supply Chain Management, Manufacturing — Question 22

A company produces generic and name-brand paper plates in the same factory using standard costing and using the same Bill of materials and routes to produce both products.
The finance and production teams want a way to view individual raw material consumption costs in the ledger.
You need to add a production group to control postings to the ledger.
What should you do?

Answer options

• A. Create a production group for the finished good item
• B. Update the cost of the generic finished good item
• C. Create a production pool for the finished good item
• D. Create a new Bill of materials with alternate costs for the raw material

Correct answer: A

Explanation

Creating a production group for the finished good item allows for better tracking and control of individual raw material costs in the ledger, addressing the needs of both finance and production teams. The other options do not directly facilitate the tracking of raw material consumption costs in the same effective manner as establishing a production group.