Capsim Exam

inside each fine cut circle

segments have an ideal spot where demand is at its highest

Assuming no additional product promotion, what percent of customers, reached through last year's marketing campaign will carry over into the current year?

67%

how much do segment prices fall each year

$0.50

Based on the example in the student guide, what additional awareness does a promotion budget of 1.5 million buy?

36%

what is the measure for product reliability?

how long a product is expected to function

when a product's positioning (performance/size) is updated, what happens to the product's age?

it cuts in half

if you purchase production capacity and automation

it is available in the next year

which market segment places the most importance on price

low end

at the beginning of the simulation, how many assembly lines are there?

5 lines per company

In a sellers market even pathetic products are snapped up by desperate buyers because

First shift capacity plus 2nd shift capacity are less than the total segment demand

If the previous year you reached 100% customer awareness in your company, this year what will you need to do to maintain this level?

I would scale back promotional expenditures to about 1.4 million to maintain awareness

If you are marketing to high end customers, which criteria are most important to them in order of importance?

Positioning, Age, MTBF, Price

you should purchase capacity for products with a second shift of 90%

true

Market Segment

a group of customers with similar purchasing concerns

what does the sales budget determine?

accessibility

Throughout the simulation new companies never enter the market

true

high tech customers want cutting edge products that are updated every year

true

What is segments product supply exceeds demand, how much appeal, to the customer, with a product priced one dollar above or below the segment price range lose?

20%

The finance department can use which of the following methods as capital for company activities

current debt, stock issues, bond issues, and profits

If your company has a sales budget of 3 million and drops it to zero, in that year...

accessibility will drop by 1/3

which financial obligation is satisfied with current debt

accounts payable

How can assembly lines double their capacity?

add a second shift

A firm's bond rating slips by 1 category for each ____________ in interest

additional .5%

capital needed for company activities cannot be acquired through

arbitrarily firing employees

as the rounds progress, the customer segments will converge together

false

what is the minimum amount of time it takes to invent a new sensor?

1 year at least

In Finance, you are responsible for:

Ensuring the company has enough cash to run the business throughout the year

Last year your company built 1,500,000 units of product able and sold 1,405,000 after 14 months in R&D, a revision of product Able is due out tomorrow, on January 2 (the first business day of this year) what will happen to the unsold inventory of 95,000 units of "old" product Able?

They'll be rework to match the new specifications for product Able

When the practice rounds are over (Both individual and team) the simulation will be reset so that real competition can begin among the teams each management team will take the reins of

a $100 million company with 5 products

Which of the following is NOT considered in the Fine Cut? Positioning Price Age Reliability Automation

automation

The promotion budget affects

awareness

Products that have revisions that take more than 1 year can not be revised until the following year

true

An increase in promotional budgets has

diminishing returns become apparent at $2 million diminishing up to about $15 million

Emergency loans are a good option to help finance your company

false

Traditional customers want cutting edge products that are updated every year

false

you can produce twice your capacity by running a full third shift

false

If you sell all the capacity on a production line, inventory from that line is sold at

half the average cost of production

In order to achieve 100% accessibility, a team must:

have 2 products in the same segment

If you were your team decides to introduce a new sensor product, when should capacity and automation be purchased?

one round prior to product release

which financial obligation is best satisfied with bond issues

paying for increased production capacity

which market segment places the most importance on reliability

performance

the size segment places more importance on

positioning and age

age and ____________ are the only two positioning criteria that remain constant from year to year

reliability

which of the following types of products does your company sell?

sensors

If your short-term interest rate (The rate on your current death) is 12.1%, then your bond rate (the rate on your long-term debt) is:

13.5% (14% higher than the current debt rate)

The relationship between promotion and sales budgets and sensor sales is generally

a direct one

The 5 Market Segments learned in capstone are

high end, low end, traditional, performance, and size

In production, you are responsible for

making the products, and managing the capacity and automation for your plant's production lines

a change in MTBF affects

material cost