Effective Labor Cost Update: Key Element for Manufacturing Companies | MB-320 Exam Prep

Update Effective Labor Costs: MB-320 Exam Preparation

Question

You are the production supervisor in charge of setting effective cost prices for the labor force in a manufacturing company.

It is the end of the year and the labor rates have been recalculated based on new salary data.

You need to update the effective labor costs for all labor groups.

Which element must be updated?

Answers

Explanations

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A. B. C. D. E.

D.

The correct answer is C. resource group.

In Microsoft Dynamics 365 Supply Chain Management, Manufacturing, a resource group represents a group of workers with similar skills and qualifications who can perform the same type of work.

When setting up cost prices for labor in a manufacturing company, you will typically create resource groups for different types of workers, such as machine operators, assemblers, and quality inspectors. You can then assign cost prices to each resource group based on their hourly rates and any additional costs associated with their work, such as benefits or equipment.

At the end of the year, when the labor rates have been recalculated based on new salary data, you need to update the effective labor costs for all resource groups. To do this, you must update the cost prices assigned to each resource group to reflect the new hourly rates and any other changes in costs.

Therefore, the correct element to update in this scenario is C. resource group. Updating the cost groups (A), shared category (B), cost category (D), or production orders (E) would not result in the effective labor costs being updated for all labor groups.