Microsoft Dynamics 365 Supply Chain Management, Manufacturing — Question 49

A company uses cost groups to track calculated costs of items preassembled by vendors.

The company needs to analyze service costs for each vendor’s preassembled items.

You need to assign the cost group type to the preassembled items.

Which costs should you assign?

Answer options

• A. Direct material
• B. Indirect
• C. Direct manufacturing
• D. Direct outsourcing

Correct answer: A

Explanation

The correct answer is A, Direct material, because these costs directly relate to the materials used in preassembled items. Options B (Indirect) and C (Direct manufacturing) do not represent the specific costs associated with the items, while D (Direct outsourcing) is not applicable since the focus is on the materials rather than the outsourcing process.