Exam MB-330 topic 2 question 8 discussion

B. FIFO is correct. Moving average and Standard cost do not require inventory closing.

FIFO ONLY

https://learn.microsoft.com/en-ca/training/modules/set-up-work-inventory-control/inventory-cost. Microsoft learn clearly states that :The cost method is on the Costing method & cost recognition FastTab. The field is named Inventory model. The list of available cost methods includes: FIFO LIFO LIFO date Weighted avg. Weighted avg. date Standard cost Moving average The first four methodologies require an inventory close at the end of each financial period so that you can settle issues against the receipts. Standard cost and moving average don't require a monthly close.

A See "Inventory close is a required step in the month-end closing procedure for all inventory models except moving average. You will be warned if you try to close a financial period without first performing the inventory close as of the period end date." here https://learn.microsoft.com/en-us/dynamics365/supply-chain/cost-management/inventory-close

Inventory close is a required step in the month-end closing procedure for all inventory models except moving average. You will be warned if you try to close a financial period without first performing the inventory close as of the period end date.

https://learn.microsoft.com/en-us/dynamics365/supply-chain/cost-management/inventory-close

2 conflicting answers: 1. In this article is said that "Inventory close isn't required if you use the Standard cost valuation method". 2. But in this article said " Note Inventory close is a required step in the month-end closing procedure for all inventory models except moving average. You will be warned if you try to close a financial period without first performing the inventory close as of the period end date." Both of them are https://learn.microsoft.com/

"Inventory close is a required step in the month-end closing procedure for all inventory models except moving average" refer doc. [Note AX does not require month end for std costing, but D365 does] https://learn.microsoft.com/en-us/dynamics365/supply-chain/cost-management/inventory-close

Correct answer is: A. FIFO and Standard Cost items Only moving average does NOT require the inventory close as the inventory model group1. This is because the moving average method is a perpetual costing method based on the average principle, where the costs on inventory issues do not change when the purchase cost does1. Therefore, inventory close is not required for items using the moving average costing method1. Thank you for pointing that out. I apologize for any confusion caused.

https://learn.microsoft.com/en-ca/training/modules/configure-inventory-management-dyn365-supply-chain-mgmt/17-invent-close-adjust Consider the following about inventory close: Inventory close isn't required if you use the Standard cost valuation method.

Offered are 2 - FIFO and Standard cost, Standard cost don't require close, hence FIFO

How i can discrimnate between 2 cost method ir order to calculate the value of inventories if both methods are exclusive?

Check the links: https://docs.microsoft.com/en-us/dynamics365/supply-chain/cost-management/inventory-close https://www.axug.com/communities/community-home/digestviewer/viewthread?GroupId=925&MessageKey=7a57c656-dcc4-444f-ac61-eee5477701ed&CommunityKey=af0dadbe-c222-4660-9d1e-a9e3416c837a&tab=digestviewer

It looks the Standard cost also needs Inventory closing based on this link "Inventory close is a required step in the month-end closing procedure for all inventory models except moving average. You will be warned if you try to close a financial period without first performing the inventory close as of the period end date." https://docs.microsoft.com/en-us/dynamics365/supply-chain/cost-management/inventory-close and in AX doesn need Standard cost "As from the Microsoft Dynamics AX release, inventory close is not required with the Standard cost valuation method." https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/about-inventory-close the answer shouldn't be A?

B. Fifo Only

Agree. B is correct

I think C is correct, becuse LIFO, and Date Weighted Average items require inventory closing.