Free Microsoft Dynamics MB-330 Actual Exam Questions - Question 15 Discussion
An engineering department designs a bill of materials (BOM) for a new finished good. The finished good must be sold with a 30 percent markup of the BOM cost. You need to define the sales price for the finished good. What should you set up on the cost group? Select only one
It’s B because the cost group behavior determines how costs are treated and how the markup gets applied. Just setting a profit percentage (A) won’t work properly unless the system knows how to handle the group, like if it’s direct or indirect costs. Options C, D, and E focus on categorizing the costs but don’t directly set up the markup or pricing logic. So defining the cost group behavior is more fundamental to setting the sales price based on BOM costs.
It’s A because setting the profit percentage directly controls the markup.
Option B seems key because defining the cost group behavior could specify how costs and markups are handled overall, which might be more critical than just labeling it as direct or indirect.
I think option A makes sense here because the question is about setting the sales price with a 30% markup on the BOM cost. The profit setting percentage should be where you define that markup directly. The cost group type options (C, D, E) seem more about categorizing costs rather than applying a markup. So isn’t the key step to set the profit percentage in the cost group to ensure the sales price includes that 30% profit? What’s the point of picking a cost group type if it doesn’t help with the actual markup calculation?
C imo, since the BOM cost usually refers to direct materials only. Setting the cost group type to Direct materials makes sure the base cost is right before applying any markup. Profit settings (A) might handle markup, but without defining the cost group type properly, the calculation could be off. Indirect or undefined types don’t fit well here, as they relate more to overhead or miscellaneous costs, not the BOM itself.
Maybe A, since profit settings handle markup percent directly.
Amit V.: B imo, but the question doesn’t say if the markup is applied on top of direct or indirect costs specifically. Should the cost group be set as direct materials or something else to calculate the 30% markup properly? Wondering if more detail on the cost group scope or type is needed to pick the right option here.