Capsim Practice Exam
How much do segment prices fall each year?
$0.50
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...
$100 million company with 5 products
High Tech customers want cutting edge products that are updated every year.
TRUE
Products that have revisions that take more than 1 year can not be revised until the following year
TRUE
Throughout the simulation new companies will eventually enter the market. True or False?
TRUE
You should purchase capacity for products with the second shift of 90%
TRUE
If your short-term interest rate (the rate on your current debt is 12.1%, then your bond rate (the rate on your long-term debt) is:
13.5% (1.4% higher than current debt rate)
When a segment's product supply exceeds demand, how much appeal, to the customer, will a product priced $1 above or below the segment price range lose?
20%
Based on the example in the Student Guide, what additional awareness does a promotion budget of $1,500,000 buy?
36%
Assuming no additional product promotion, what percent of customers, reached through last year's marketing campaign will carry over into the current year?
67%
What does the Sales Budget determine?
Accessibility
Which financial obligation is best satisfied with current debt?
Accounts payable
Capital needed for company activities cannot be acquired through:
Arbitrarily firing employees
Which of the following are not considered in the Fine Cut?
Automation
At the beginning of the simulation, how many assembly lines are there?
Five lines per company
The 5 market segments are:
High end, Low end, Traditional, Performance, and Size
What's the measure for product reliability?
How long a product is expected to function
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 $1,400,000 to maintain awareness
If you are marking High End customers, which criteria are most important to them in order of importance?
Positioning, Age, MTBF, Price
Age and _____ are the only two positioning criteria that remain constant from year to year.
Reliability
The finance department can use which of the following methods as capital for company activites?
current debt, stock issues, bond issues, and profits
When a product's positioning (performance/size) is updated, what happens to the products age?
cuts in half
In finance, you are responsible for:
ensuring the company has enough cash to run the business throughout the year
What is the minimum amount of time it takes to invent a new sensor?
1 Year at least
As the rounds progress, the customer segments will drift away from each other. True or False?
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
Emergency loans are a good option to help finance your company
False
Which market segment places the most importance on price?
Low end
If you or your team decided to introduce a new sensor market, when should capacity and automation be purchases?
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 relationship between promotion and sales budgets and sensor sales is generally
a direct one
What is a market segment?
a group of customers with similar purchasing concerns
IF your company has sales budget of $3 million and drops it to zero, in that year...
accessibility will drop by one third
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 0.5%
The promotion budget affects:
awareness
An increase in promotional budgets has:
diminishing returns become apparent at $2 million diminishing up to about $15 million...
In a seller's market even pathetic products are snapped up by desperate buyers b/c...
first shift capacity plus second shift capacity are less than total segment demand
If you sell all of 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 two products in the same segment
If you purchase production capacity and automation:
it is available in the next year
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
The size segment places more importance on
positioning and age
which one of the following is NOT one of the four product characteristics that R&D can set?
quality
Inside each fine cut circle,
segments have an ideal spot where demand is at its highest.
Which of the following types of products does your company sell?
sensors
Last year you r 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 (first business day of this year) what will happen to the unsold inventory of 95,000 units of "old" product able?
they'll be reworked to match the new specifications for product able
