Microsoft Dynamics 365 Supply Chain Management Functional Consultant Expert — Question 107

A product is produced through lean manufacturing. The cleaning and inspection is performed by a contractor as an activity of a production flow.
You need to assign the appropriate cost group type for the subcontracted work.
Which cost group type should you use?

Answer options

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

Correct answer: B

Explanation

The correct answer is B, as 'Direct outsourcing' specifically refers to costs incurred when tasks are contracted out to external vendors. The other options do not accurately categorize the costs associated with subcontracted work; 'Direct manufacturing' and 'Direct material' refer to internal production costs, while 'Undefined' and 'Indirect' do not apply in this scenario.