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PassLeader MB6-700 Exam Questions[27]

QUESTION 1
You need to track the project costs in balance accounts until the customer is invoiced. Which type of project should you use?

A.    fixed-price project with completed contract
B.    fixed-price project with completed percentage and sales value
C.    time and material project with work in process (WIP)
D.    internal project with work in process (WIP)
E.    time and material projects with accruals

Answer: C

QUESTION 2
You set up a new internal project. You need to manually create a hierarchical representation of the activities for the project. Which form should you use?

A.    Activities
B.    Assign resources
C.    Work breakdown structure template
D.    Work breakdown structure

Answer: D

QUESTION 3
You set up three pay-when-paid (PWP) terms and assign them to the vendors for a project. For the first PWP term, you set the account code for all vendors (All). For the second PWP term, you set the account code for an individual vendor (Table). For the third PWP term, you set the account code for a group of vendors (Group). What is the order of precedence for assigning the PWP terms when you create a project purchase order?

A.    Table, All, Group
B.    All, Group, Table
C.    Table, Group, All
D.    All, Table, Group

Answer: C

QUESTION 4
You configure a timesheet workflow. What is the Assignment function used to define?

A.    conditions for approval of the timesheet
B.    notifications after approval of a timesheet
C.    submitters of the timesheet
D.    reviewers of the timesheet

Answer: D

QUESTION 5
You attach an invoice format to the project contract. Which item is controlled by the invoice format setting?

A.    invoice output destination
B.    invoice currency
C.    invoice summarization
D.    invoice orientation

Answer: C

QUESTION 6
You need to configure worker validation project assignments to ensure that certain projects are available for a specific worker. On which form should you configure this type of validation?

A.    project
B.    project contract
C.    worker
D.    project management and accounting parameters

Answer: C

QUESTION 7
Which three items are valid project types? (Each correct answer presents part of the solution. Choose three.)

A.    Investment
B.    Profit and loss
C.    Time
D.    Time and material
E.    Quotation

Answer: ABD

QUESTION 8
Which journalizing option is used only for time tracking?

A.    No ledger
B.    Profit and loss
C.    Never ledger
D.    Balance

Answer: A

QUESTION 9
Which two statements about a header project are true? (Each correct answer presents a complete solution. Choose two.)

A.    Transactions cannot be posted to a header project.
B.    A header project is designated by the Project group field.
C.    Each level of a project hierarchy can have only one project header.
D.    A header project must be created at the top level of a hierarchy.

Answer: AD

QUESTION 10
You need to set up a pay when paid (PWP) term for a project. Which project type should you choose?

A.    time and material
B.    internal
C.    cost
D.    fixed-price

Answer: A

QUESTION 11
You set up project management and accounting. You need to represent the types of costs and revenues that are defined for all projects in your entire organization. Which item should you create to organize categories?

A.    shared category
B.    expense category
C.    project category
D.    category group

Answer: D

QUESTION 12
You need a quick snapshot view of a project’s progress. Which form should you use?

A.    Invoice control
B.    Project statements
C.    Cash flow
D.    Cost control

Answer: B


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QUESTION 13
Which two items are determined by the cost templates for advanced fixed-price projects? (Each correct answer presents part of the solution. Choose two.)

A.    the amount of hours that can be posted for advanced fixed-price projects
B.    the amount of expenses that can be posted for advanced fixed-price projects
C.    whether to calculate the degree of completion on the posted amount or quantity
D.    the categories included in calculating the degree of completion

Answer: CD

QUESTION 14
You have several transactions that are not going to be invoiced. You need to ensure that these transactions are still moved to the profit and loss accounts. Which form should you use?

A.    Post costs
B.    Hour journal
C.    Expense journal
D.    Item journal

Answer: A

QUESTION 15
Which two statements about project hierarchies are true? (Each correct answer presents part of the solution. Choose two.)

A.    Only the parent project can be used for invoicing.
B.    Subprojects must be configured with the same project type.
C.    Subprojects must be configured to represent different project phases.
D.    Subprojects can be used to process special accounting requirements.

Answer: AB

QUESTION 16
You set up an effective labor rate for a worker. The hourly cost price is 60 USD. 40 hours are available in the work week calendar. The worker submits only 30 hours for the week. What is the effective labor rate that is calculated for this worker?

A.    (30*40)/60 = 20
B.    (30/40)*60 = 45
C.    (60*30)/40 = 45
D.    (60*40)/30 = 80

Answer: D

QUESTION 17
Which statement about the effective labor rate (ELR) feature is true?

A.    Effective labor rate is not enabled by default for all workers and can be enabled for the workers you select.
B.    Effective labor rate is enabled when a cost price amount and calendar are specified for that worker.
C.    Effective labor rate is enabled by default for all workers and can be disabled for the workers you select.
D.    Effective labor rate is enabled by default for all workers and cannot be disabled.

Answer: A

QUESTION 18
Which item is used to transfer costs from work in process (WIP) accounts to profit and loss accounts?

A.    Post costs form
B.    Adjustments form
C.    On-account posting
D.    Expense journal

Answer: A

QUESTION 19
Which statement for both the cost and the time project types is true?

A.    Both allow registering hour transactions.
B.    Both allow capitalizing on balance sheet accounts.
C.    Both allow registering expense transactions.
D.    Both allow posting hour transactions on profit and loss accounts.

Answer: A

QUESTION 20
You work with a fixed-price project. To which process do the completed contract and completed percentage assessment principles relate?

A.    posting revenue
B.    transferring costs from balance sheet to profit and loss accounts
C.    posting costs
D.    accumulating costs in balance sheet accounts

Answer: A

QUESTION 21
What can the Resource assignment analysis report do that the Resource assignments report cannot do?

A.    It can show how many hours a resource is assigned to a project.
B.    It can show availability of a resource.
C.    It can be filtered to include certain commitment types.
D.    It can be filtered to include a specified date range.

Answer: B

QUESTION 22
What is the purpose of the estimate process for a fixed-price project?

A.    to periodically clear ledger postings after the project transactions are adjusted
B.    to create a new estimate for a fixed-price project
C.    to adjust the forecast according to the actual project progress
D.    to provide a snapshot of a project’s finances at a single point in time

Answer: D

QUESTION 23
Which three statements about on-account invoices are true? (Each correct answer presents part of the solution. Choose three.)

A.    On-account invoices must specify a project date.
B.    On-account invoices can be created by using an invoice proposal.
C.    On-account invoices can only be used for external project types.
D.    On-account invoices can be used for both fixed-price and time and material projects.
E.    On-account invoices can specify offset transactions when used for fixed-price projects.

Answer: ABD

QUESTION 24
You need to recognize revenue as project costs are posted. Which type of project should you use?

A.    fixed-price project with completed percentage and production plus profit
B.    time and material project with work in process (WIP)
C.    time and material project with accruals
D.    fixed-price project with completed percentage and sales value
E.    internal project with work in process (WIP)

Answer: C

QUESTION 25
Which three items are valid base amount options when defining compounding rules for an indirect cost calculation? (Each correct answer presents part of the solution. Choose three.)

A.    Cost
B.    Revenue
C.    Invoice
D.    Unit rate
E.    Percent

Answer: ABC


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