Capsim Test
66. If you drop your sales budget to zero, accessibility drops to 0% in how many years? a. 1 b. 2 c. 3 d. 4 e. 5
3
4. What are three of the five Segments? a. Traditional, Low End, Performance b. Traditional, Low End, Cost End c. Low End, High End, middle End d. Median, Size, High End e. Performance, Size, Cost
a. Traditional, Low End, Performance
9. Once you upload your official decisions during a round, how many times can you change them before the end of the round? a. 0 b. 1 c. 2 d. 5 e. As many times as you want
e. As many times as you want
11. On perceptual map, the percentage of customers interested in a product positioned outside of the rough cuts of that product is a. 0% b. 2% c. 5% d. 10% e. 20%
a. 0%
1. When opening the Excel version of Capstone®, you should do what to Macros? a. Enable b. Disable c. Engage d. Disarm e. Does not matter
a. Enable
8. After you have uploaded your decisions to the website, you can change your official decisions as many times as you want prior to the processing date and time of the round. a. True b. False
a. True
77. If current wages are set at $10/hour, what would be the minimum starting pay that your company would offer? a. $6/hour b. $8/hour c. $10/hour d. $12/hour e. none of the above
b
87. Which financial obligation is best satisfied with Bond Issues? a. Accounts Payable b. Increased production capacity c. Changes in A/R policy d. Salary increases e. All of the above
b
89. What is your bond rate? The prime rate is 10%; your current bond rating slipped one category (from AAA to AA). a. 12.1% b. 10.5% c. 11.4% d. 11.2%
b
95. You are charged a ____ brokerage fee to issue stock and ____ brokerage fee to retire stock. a. 5%; 0% b. 5%; 1.5% c. 1.5%; 5% d. 0%; 5% e. 5%; 5%
b
98. How can the R&D cycle time be reduced? a. Increasing automation levels b. Budgeting money to quality initiatives c. Increasing R&D budget d. Decreasing product portfolio e. Decreasing capacity
b
60. Marketing is concerned with 4 things. What are they? a. Price, Reliability, Age, and Product b. Place, Age, Promotion, and Product c. Price, Place, Promotion, and Product d. Product, Place, Promotion, and Reliability e. Innovation, Product, Place, and Promotion
c
61. An increase in promotional budgets have: a. increasing returns over time. b. level returns over time. c. decreasing returns over time. d. decreasing then increasing returns over time. e. increasing then decreasing returns over time.
c
62. Promotion efforts are subject to a. economies of scale. b. increasing returns. c. diminishing returns. d. promotion expenditure. e. customer awareness.
c
64. Assuming no additional product promotion, what percent of customers, reached through last year's marketing campaign will carry over into the current year? a. 33% b. 50% c. 67% d. 0% e. None of the above
c
67. If your company has a sales budget of $3 million and drops it to zero, a. accessibility drops by $1 million every year. b. awareness drops to zero. c. accessibility drops to 0% in three years. d. sales will drop to zero. e. all of the above.
c
73. If you want to add 500,000 units of capacity to an assembly line with an automation rating of 5, how much will it cost? a. 1,200,000 b. 1,300,000 c. 13,000,000 d. 24,000,000 e. 26,000,000
c
74. If a line has a capacity of 100,000 units, the cost of changing the automation level 1 unit either up or down is a. $60,000. b. $40,000. c. $400,000. d. $600,000. e. none of the above.
c
78. In the current contract, the workers' wage rate is $20.00. Which of the following negotiation positions would be outside the starting and ceiling amounts? a. $16.00 to $25.00 b. $18.00 to $30.00 c. $18.00 to $35.00 d. $16.00 to $20.00 e. Both a and d would be outside the rules.
c
81. To run perfectly, all HR department managers should know that a. the negotiation starting point should not exceed 80%. b. the starting point for benefits or wages should be between 0-150% of the current contract. c. all strike settlements should be halfway between the demand and the negotiation ceiling. d. all of the above is correct. e. none of the above are true.
c
91. If your interest rate is 12.1%, and when you issue new bonds, the bond interest rate is: a. 10.7%. b. 12.1%. c. 13.5%. d. 6.1%. e. 12%.
c
94. In Capstone® what would the bond number be for a bond with an interest rate of 6.5% that matures in 2003? a. 6.5S03 b. 2003S6.5 c. 6.5S2003 d. .03S6.5 e. 6.5.2003
c
97. Budgeting money to Quality initiative will lead to these outcomes except: a. decrease R&D time. b. increase Demand. c. increase Labor Costs. d. increase efficiency. e. produce administrative savings.
c
99. Investing in CPI can a. reduce administrative costs. b. reduce material and administrative costs. c. reduce material costs and labor costs to a lesser degree. d. reduce labor costs and reduce R&D cycle time.
c
10. What trend can be explicitly observed in the industry in which your company is operating? a. More and more products are sold directly to the private end consumer. b. Products become more and more expensive. c. Products become smaller and smaller. d. Customers show less and less brand loyalty. e. All of the above.
c. Products become smaller and smaller.
21. Over time, the segments will drift in which direction on the Perceptual Map? a. up; left b. up; right c. down; left d. down; right e. will remain still and constant
d
39. What is the correct answer concerning the top buying criteria for the following segment: a. Positioning for low end and Price for high end. b. Reliability for low end and Performance for high end. c. Price for low end and Performance for high end. d. Price for low end and Positioning for high end. e. Positioning for low end and MTBF for high end.
d
45. Which one is not an area in which Capstone® separates company activities? a. Marketing b. Production c. R&D d. Logistics e. TQM
d
46. The following represent core company activities that must be addressed each year except: a. Research and Development. b. Marketing. c. Finance. d. Labor Negotiations. e. Production.
d
76. Which three factors drive labor cost? a. Production capacity b. Wage and benefit rates c. Automation levels d. Second shift/Overtime costs e. b, c, d
e
80. Labor Negotiation includes: a. hourly wage. b. benefits. c. profit sharing. d. annual raise. e. all of the above.
e
83. In the Human Resources section, workers will strike one week for: a. every 1% your Annual Raise Negotiation Ceiling is beneath Labor's demand. b. every $300 your Benefits Negotiation Ceiling is beneath Labor's demand. c. every 1% your Profit Sharing Negotiation Ceiling is beneath Labor's demand. d. every $1 your Wage Negotiation Ceiling is beneath Labor's demand. e. all of the above.
e
85. Your finance department is primarily concerned with a. acquiring the capital needed for company activities. b. establishing a dividend policy that maximizes the return to shareholders. c. setting credit policies for customers and suppliers. d. profits. e. all of the above.
e
88. What happens to a company when its debt-to-assets ratio increases? a. Its credibility among creditors suffers. b. It envisages higher risk. c. Its short term interest rates increase. d. Its bond rating is reduced. e. c, d
e
96. The Credit Policy Lag has implications for: a. Customer survey score. b. Performance. c. Production. d. Size. e. a, c.
e
7. Successful managers will: a. Create a strategy b. Coordinate company activities c. Analyze the market and its competing products d. A and B e. A, B, and C
e. A, B, and C
107. Which three customer groups "ride the wave of technology" and are considered to be in the high technology segments? a. Performance, High End, and Size b. Performance, Traditional, and High End c. Performance, Low End, and Size d. Traditional, High End, and Size e. Traditional, Low End, and Size
a
108. When plotting the segment locations for each round a. the goal is to determine the ideal spot location for each segment during the 8 years. b. the goal is to determine which products are the highest in demand. c. you use price on one axis and performance on the other. d. you should use Microsoft Excel. e. all of the above.
a
114. If your current capacity is 10,000 units and your automation level is 5.0, what is the difference of the investment between doubling your capacity and doubling your automation level? a. $60,000 b. $20,000 c. $10,000 d. $520,000 e. $260,000
a
121. The reliability component cost of a product with a 17,000 hour MTBF rating is: a. $5.10. b. $17.00. c. $51.00. d. $170. e. cost cannot be determined with information given.
a
134. When going to a new automation level a. there is a 1 year lag. b. there is a lag dependent on the amount the automation level has been changed. c. there is no lag. d. the lag is dependent on the cost. e. none of the above.
a
136. Maximum issue is a. the upper limit in thousands of dollars that teams can issue in stock this year. b. amount in thousands of dollars that teams wish to issue in stock. c. upper limit of stock that can be bought back in thousands of dollars. d. amount of stock, if any, to buy back. e. none of the above.
a
145. Repositioning moves a product on the Perceptual Map from its old location to a new one. When does the new location become active? a. The day the R&D project completes b. The following year the R&D project completes c. The month the R&D project completes d. The day capacity and automation is purchased e. The day capacity is purchased
a
146. If a product's Automation rating is substantially increased, it will: a. take longer to move the product across the Perceptual Map. b. take a shorter time to move the product across the Perceptual Map. c. not allow the product to move across the Perceptual Map. d. have no effect on the product moving across the Perceptual Map. e. other.
a
150. This strategy will allow us to maintain a presence in every market segment. Competitive advantage will be gained by keeping R&D costs, Production costs and raw material costs to a minimum, enabling us to compete on the basis of price. We will price below average. We will increase automation levels to improve our margins and to make it acceptable to run second shift/overtime. a. Broad Cost Leader b. Niche Cost Leader c. Cost Leader with Product Life Cycle Focus d. Differentiation Strategy with a Product Life Cycle Focus e. Broad Differentiation
a
153. This strategy will focus on the high technology segments (High End, Performance and Size). Competitive advantage will be gained by distinguishing our products with excellent design, high awareness, easy accessibility, and product extenders. Our R&D competency will keep our designs fresh and exciting. Our products will keep pace with the market, offering improved size and performance. The prices of our products will be above average and we will expand capacity as we generate higher demand. a. Niche Differentiation b. Niche Cost Leader c. Cost Leader with Product Life Cycle Focus d. Differentiation Strategy with a Product Life Cycle Focus e. Broad Differentiation
a
162. When investing in print media, diminishing returns apply after a. $700,000 per product. b. $700,000 per segment. c. $500,000 per product. d. $300,000 per segment. e. $800,000 per segment.
a
170. Process Management Initiatives a. improve business procedures, resulting in improved efficiencies and cost structures. b. improve product quality while reducing the time and resources required to design, manufacture, warehouse and ship products. c. improve business procedures and product quality, resulting in improved efficiencies and costs structures. d. improve product quality and business procedures.
a
111. What is the total cost in dollars for adding 1.0 million units of capacity to a production line with an automation level of 1.0 and floor space costs per unit of $6? Assume automation costs per unit of $4. a. $26 million b. $10 million c. $2.6 million d. $1 million e. none of the above
b
112. If you are currently producing 100,000 units and your automation level is 10, how much will it cost you to double your capacity? a. $1,000,000 b. $4,600,000 c. $100,000 d. $10,000 e. none of the above
b
116. As a manager you need to change the automation level of your segment from 2 to 5. The line has a capacity of 2 million. How much would it cost? a. $12 million b. $24 million c. $10 million d. $6 million e. none of the above
b
117. Rapid movement of an existing product on the Perceptual Map requires a. reliability adjustment. b. low automation levels. c. high automation levels. d. none of the above.
b
120. In the Capstone® simulation, what are the components of a product's minimum material cost? a. Cost of Inventory on hand and the cost to store it b. Reliability component cost and positioning component cost c. The costs associated with inventory, shipping and handling d. Level of automation and product reliability e. None of the above
b
126. New products are created on which spreadsheet? a. Production b. Research and Development c. New Products and Repositioning d. Marketing e. Market Research and Analysis
b
140. Which customer group or market segment seeks proven products using current technology? a. Traditional customers b. Low End customers c. High End customers d. Performance customers e. Size customers
b
141. Which customer group or market segment seeks proven products, are indifferent to technological sophistication, and are price motivated? a. Traditional customers b. Low End customers c. High End customers d. Performance customers e. Size customers
b
152. This strategy will concentrate on the Traditional and Low End segment. Competitive advantage will be gained by keeping R&D costs, Production costs, and raw materials costs to a minimum, enabling us to compete on the basis of price (low prices). The product will be priced below average and automation levels will be increased to improve contribution margins and make it acceptable to run second shift/overtime. a. Broad Cost Leader b. Niche Cost Leader c. Cost Leader with Product Life Cycle Focus d. Differentiation Strategy with a Product Life Cycle Focus e. Broad Differentiation
b
156. When working with Distributors, each distributor costs a. $35,000. b. $100,000. c. $50,000. d. $125,000. e. $110,000.
b
160. In only one product segment, diminishing returns for outside sales is reached at a. 75. b. 12. c. 15. d. 45. e. 30.
b
161. The marketing budget detail sales screen allows companies to allocate their promotion budget to different media channels. These media channels are: a. Print Media, Outside Sales, Direct Mail, Trade Shows, and E-Mail. b. Print Media, Direct Mail, Trade Shows, E-Mail, and Web Media. c. Inside Sales, Outside Sales, and Trade Shows. d. Direct Mail, E-Mail, Web Media, Print Media, and Television. e. E-Mail, Web Media, Print Media, and Inside Sales.
b
164. The potential reach for Trade Shows is rated as good for the a. Traditional. b. High End. c. Performance and Low End. d. Performance and High End. e. Size and Performance.
b
165. The Promotion part of advanced marketing allows teams to allocate their time based on a. market segments. b. each Product. c. promotion does not allow allocation of time. d. each of the 5 designated promotional areas.
b
166. The time allocation on the advanced marketing module can be used to a. make a greater effort by the sales staff which translates into increased demand for that segment. b. make a greater effort by the sales staff which translates into increased demand for that product. c. there isn't a time allocation on the advanced marketing module. d. increase the promotional budget resources to increase awareness. e. huh?
b
168. A product's demand is driven by a. price, product, promotion and TQM/Process Initiatives. b. customer survey. c. positioning and price. d. market share. e. market share, positioning and price.
b
171. TQM initiatives a. improve business procedures, resulting in improved efficiencies and cost structures. b. improve product quality while reducing the time and resources required to design, manufacture, warehouse and ship products. c. improve business procedures and product quality, resulting in improved efficiencies and costs structures. d. improve product quality resulting in improved cost structures. e. improve product quality and business procedures.
b
101. Within the Process Management Initiatives, channel support systems a. reduce material cost. b. reduce labor costs. c. increase demand. d. reduce R&D cycle time. e. none of the above.
c
103. Which of the following is an example of a TQM initiative? a. Continuous Process Improvement b. Just-in-Time [Inventory] c. Quality Function Deployment Effort d. Channel Support Systems e. Quality Initiative Training
c
105. The situation analysis consists of ______ parts. a. 3 b. 4 c. 5 d. 6 e. 7
c
109. Which of the following questions is answered by the demand analysis? a. What drives our profit margins? b. How well do my products perform? c. Are the market segments growing at the same rate? d. Does the industry have adequate capacity to serve the market? e. All of the above.
c
110. Two points that should be considered in your strategy are a. the overall market is growing and prices are going down. b. the overall market is shrinking and prices are going down. c. it is easy to confuse unit market size with dollar market size. d. the overall market is growing and prices are going up and down. e. none of the above.
c
115. If you are currently producing 100,000 units at an automation level of 5, how much would it cost to maximize automation? a. $500,000 b. $50,000 c. $2,000,000 d. $5,000,000 e. none of the above
c
128. What is the minimum amount of time that it takes to create a new product? a. 3 months b. 6 months c. 1 year d. 2 years e. 5 years
c
135. Negotiation Ceilings which represent the maximum management is willing to pay are always a. 12% above the starting positions. b. 5% above the starting positions. c. 10% above the starting positions. d. unlimited. e. none of the above
c
137. Cash position is a. the cash position at the beginning of the round. b. a projection of the cash position at the end of the round. c. the cash position at the beginning of the round and a projection of the cash position at the end of the round. d. the financial position of the company. e. none of the above.
c
142. Which customer group or market segment seeks cutting edge technology in both size and performance? a. Traditional customers b. Low End customers c. High End customers d. Performance customers e. Size customers
c
148. Which of the following is not a primary concern for your Finance Department? a. Acquiring capital b. Setting credit policies for customers and suppliers c. Employee turnover d. Establishing a dividend policy e. Capital structure of the firm
c
149. This strategy attempts to gain a competitive advantage by keeping R&D costs, production costs and raw material costs to a minimum in order to compete on the basis of price. The product life cycle focus will enable sales for many years on each new product introduced into the High End segment. Products will begin their lives in the High End, mature into Traditional and finish as Low End products before they are retired and their assets harvested. a. Broad Cost Leader b. Niche Cost Leader c. Cost Leader with Product Life Cycle Focus d. Differentiation strategy with a Product Life Cycle Focus e. Broad Differentiation
c
155. When working with inside sales, each inside salesperson costs a. $35,000. b. $100,000. c. $50,000. d. $125,000. e. $110,000 plus a commission of 1%.
c
158. In only one product segment, diminishing returns for distributors is reached at a. 75. b. 12. c. 15. d. 45. e. 30.
c
169. The customer survey score is driven by a. market share. b. price. c. 4Ps. d. price and market share. e. perceptual map, MTBF and price.
c
102. Benchmarking reduces a. Material cost. b. Research and Development time. c. Labor Cost. d. Administrative Cost. e. Demand.
d
104. Within the process management initiatives, concurrent engineering a. reduces material cost, inventors' carrying costs and administrative overhead. b. reduces labor costs. c. increases the effectiveness of the sales budget and therefore demand. d. reduces R&D cycle time. e. none of the above.
d
113. What is the right formula for capacity investment? a. Investment = Capacity x ($4 x Automation) b. Investment = Capacity x [$10 + ($4 x Automation)] c. Investment = Capacity x [$4 + ($6 x Automation)] d. Investment = Capacity x [$6 + ($4 x Automation)] e. Investment = Capacity x Automation
d
118. If a product's Price was $20, its Material $8, and its Labor $7, the Margin Per Unit would be: a. $12. b. $13. c. $1. d. $5. e. $20.
d
123. A point or some points you consider for your strategy are a. strive to give your customers the top two buying criteria. b. the perceptual map is more important as a rough cut consideration than a fine cut distinction. c. maximize the effectiveness of R&D, to achieve higher demand you must have a substantially better offer, it does not matter how good your product is if you stock out. d. all of the above. e. none of the above.
d
127. Using the R&D Spreadsheet to design your products, you have which of the following projects to choose from? a. Repositioning b. Invention c. Reliability adjustment d. All of the above e. None of the above
d
129. What are the drivers of Material Costs? a. Higher performance b. Smaller size c. Higher Mean Time Between Failure (MTBF) d. All of the above e. None of the above
d
130. The marketing spreadsheet is used to set which of the following: a. prices. b. promotion budgets. c. sales budgets. d. all of the above. e. none of the above
d
131. The A/R lag is a. a marketing spreadsheet definition. b. the accounts receivable lag (in days). c. the time between customers receiving products and when they are expected to pay for them. d. a, b, and c.
d
143. Which customer group or market segment seeks high reliability, advanced technology products that emphasize high performance? a. Traditional customers b. Low End customers c. High End customers d. Performance customers e. Size customers
d
147. There is ______ lag in buying new Capacity and ______ lag in changing Automation. a. 0; 0 b. 1 year; 0 c. 0; 1 year d. 1 year; 1 year e. ½ year; ½ year
d
154. The resources used in the Sales Budget are a. E-mail, Trade Shows, Web Media and Print Media. b. Print Media, Outside Sales, and Distributors. c. Trade Shows, Outside Sales, Distributors, and Inside Sales. d. Outside Sales, Distributors, and Inside Sales. e. Trade Shows, Distributors, Outside Sales, Inside Sales, and Print Media
d
157. When working with Outside Sales, each salesperson costs a. $35,000. b. $100,000. c. $50,000. d. $125,000. e. $110,000 plus a commission of 1%.
d
167. In forecasting, it is not likely that you will take half of the sales unless a. the product positioning is ideal. b. the product meets the top 2 buying criteria and the price is low. c. the positioning, age and MTBF are superior. d. the price is at the low end of the range and the positioning, age and MTBF are superior.
d
106. The situation analysis is a. a team exercise. b. designed to help your group understand the current market conditions. c. designed to help your group understand how the industry will evolve over the next 8 years. d. a five part analysis. e. all of the above.
e
119. If the price/product is $10 and the material cost/product is $2 and the labor cost/product is $3, what is the margin/product? a. $6 b. $2 c. $4 d. $3 e. none of the above
e
122. The best case margin potential for a product with a top price of $30 and a minimum cost of goods sold of $15 is: a. $45. b. $2. c. $450. d. $.50. e. none of the above.
e
124. In Capstone®, the spreadsheets allow team members to a. make changes to variables. b. observe the results of changes made to variables. c. design their own performance criteria with which to compare market segments. d. all of the above. e. both a and b.
e
125. Each of the spreadsheets a. work independently. b. depend on values entered in other spreadsheets. c. work simultaneously. d. all of the above. e. both a and b.
e
132. What happens to a company when it increases the A/P lag? a. It improves its cash position. b. It deteriorates its cash position. c. It loses credibility. d. Its suppliers withhold material for production. e. a, d.
e
133. The automation level a. causes you to require more manpower with higher ratings. b. causes you to require more manpower with lower ratings. c. causes you to require less manpower with higher ratings. d. causes you to require less manpower with lower ratings. e. both b and c.
e
138. What effects do Process Management Initiatives have? a. Administrative savings b. Higher production efficiency c. Increase in demand d. Reduction of R&D times e. All of the above.
e
139. Your team will make decisions for a. Marketing. b. Finance. c. Human Resources. d. Production. e. all of the above.
e
144. Which customer group or market segment seeks advanced technology products that focus on small size? a. Traditional customers b. Low End customers c. High End customers d. Performance customers e. Size customers
e
151. This strategy will allow us to maintain a presence in every market segment. Competitive advantage will be gained by distinguishing our product with an excellent design, high awareness, and easy accessibility. We will develop an R&D competency that keeps our designs fresh and exciting. Our products will keep pace with the market, offering improved size and performance. The price of the products will be above average and capacity will expand as we generate higher demand. a. Niche Differentiation b. Niche Cost Leader c. Cost Leader with Product Life Cycle Focus d. Differentiation Strategy with a Product Life Cycle Focus e. Broad Differentiation
e
159. In only one product segment, diminishing returns for inside sales is reached at a. 75. b. 12. c. 15. d. 45 e. 30.
e
163. The potential reach for E-mail is rated as good for the a. Traditional and Low End. b. High and Low End. c. Performance and Low End. d. Performance and High End. e. Size and Performance.
e
"Reliability" is expressed in terms of: a. Mean Time Between Failure. b. how long the product will last. c. years. d. months. e. Mean Time Before Failure.
a
15. In Capstone©, pricing standards are set by: a. Customers (Market Segment). b. Competitors. c. You, The Company. d. a range of the prices from all Teams. e. Random Selection.
a
18. The two characteristics that the perceptual map evaluates are a. Performance and Size. b. Performance and Price. c. Size and Price. d. Reliability and Performance. e. none of the above.
a
19. The Perceptual Map is a. a marketing tool used to track the position of the company's products against those of the competitors. b. a marketing tool used to compare performance against size. c. a marketing tool used to compare reliability against price. d. a marketing tool used to compare age against position. e. a marketing tool used to compare time against motion.
a
26. The prices in each segment a. drop by $0.50 each year. b. drop by $1.00 each year. c. increase by $0.50 each year. d. vary depending upon relative market demand. e. remain constant in each segment.
a
29. Inside each fine cut circle, a. segments have an ideal spot where demand is at its highest. b. product segments strive to be in the center. c. product segments strive to be near the boundaries. d. demand is at its highest as long as product segments are within the circle. e. none of the above.
a
33. What happens to a product's Perceived Age when it is repositioned in R&D? a. It is reduced by 50%. b. It is reduced by 33.3%. c. It is reduced by 25%. d. It is reduced by 10%. e. It remains the same.
a
35. At which point does the perceived age of a traditional product peak? a. 2 b. 1.5 to 2.5 years c. 7 d. 0.5 to 2 years e. whenever it's positioned
a
40. Low End customers emphasize buying criteria in which order? a. Price, Age, Positioning, Reliability b. Age, Reliability, Price, Positioning c. Positioning, Age, Price, Reliability d. Price, Positioning, Age, Reliability e. Price, Reliability, Positioning, Age
a
43. What is the most important criterion to a "Low End Segment" customer? a. Price b. Age c. MTBF d. Positioning e. Performance
a
56. Changing MTBF will: a. have no impact on Perceived Age. b. increase Perceived Age. c. decrease Perceived Age. d. change Perceived Age. e. is undetermined.
a
70. If you increase automation from 2.0 to 5.0, the cost is: a. $12 per unit of capacity. b. $15 per unit of capacity. c. $9 per unit of capacity. d. $6 per unit of capacity. e. Cannot determine with this information.
a
71. What is one drawback of increasing automation? a. The product requires increased time/expense for subsequent short-move repositioning. b. Operating second shift becomes more expensive. c. Automation causes large leaps in repositioning. d. Automation slows production capability. e. It requires more employees for the production line.
a
82. Your workers go on strike because they have demanded $20/hour and your wage negotiation ceiling is at $18/hour. Assuming that there are no other labor demands, how long will the strike last? a. 2 weeks b. 4 weeks c. 8 weeks d. 16 weeks e. There is no way to determine how long the strike will last.
a
84. The Finance Department can use which of the following methods to acquire capital for company activities? a. Current Debt, Stock Issues, Bond Issues, and Profits b. Profits, Current Debt, Withholding Pensions, and Stock Issues c. Liquidating Inventory, Stock Issues, Bond Issues and Profits d. Credit Lines, Bond Issues, Stock Issues, and Profits e. Current Debt, Stock Issues, Bond Issues, and cooking the books
a
90. An AAA rating bond with a given prime rate at r, the bond rating slips to B if the current debt interest rate is charged at a. R+2.5% b. R+0.5% c. R+1% d. R+1.5% e. R+2%
a
92. Given a prime rate of r and a short term interest rate of r+2.5, the bond rate for issuing a new bond is equal to (r+3.9%). a. True b. False
a
22. When tracking market segments on the performance and size perceptual map, which segment moves or "drifts" the slowest? a. Low End b. Traditional c. Size d. Performance e. High End
b
25. At what dollar amount above the segment guidelines is all consumer appeal lost? a. $3 b. $5 c. $10 d. $20 e. None of the above
b
28. Which of the following are not buying criteria? a. Positioning b. Automation c. Age d. Reliability e. Price
b
31. Increasing a product's reliability will result in which of the following changes to production costs? a. Lower material cost b. Higher material cost c. Higher labor costs d. Lower labor costs e. Reducing MTBF has no effect on costs of production
b
32. Age refers to: a. Inventory Age. b. Product Age. c. Market Segment Age. d. all of the above. e. none of the above.
b
37. What are the top buying criteria that low end customers most value? a. Age b. Price c. Quality d. Positioning e. Time
b
41. Each segment places a. a different emphasis on features of the 8 buying criteria. b. a different emphasis on features of the 4 buying criteria. c. same emphasis on price and reliability. d. same emphasis on performance and size. e. both c and d.
b
49. When an R&D effort started in 2001 completes on September 15, 2002, the product revision kicks in a. October 1, 2002. b. immediately upon completion. c. January 1, 2003. d. R&D has no effect on product revisions. e. September 15, 2003.
b
58. If your team decides to introduce a new product, when should capacity and automation be purchased? a. Two rounds prior to product release b. One round prior to product release c. The round of product release d. The round after product release e. Purchase of capacity and automation is not necessary for new product release
b
65. How is the strength of the sales channel measured? a. Accessibility on a scale of 0 to 50 b. Accessibility on a scale of 0 to 100% c. Accessibility on a scale of 1 to 50 d. Accessibility on a scale of 1 to 100% e. Accessibility on a scale of 1 to 25
b
69. How can assembly lines double their capacity? a. Speed up the production. b. Add a second shift. c. Double the material. d. Build more assembly lines. e. Assembly lines cannot be doubled
b
72. If you reduce automation in the production component of Marketing, you will: a. slow down R&D designs. b. incur a retooling cost. c. lose the game. d. none of the above.
b
6. What is the difference between the market segments at the beginning of the round to the final round? a. They all drift at an average rate of .7; down and to the right. b. The fine cuts overlap in the beginning and in year 8 only the rough cuts overlap. c. The fine and rough cuts overlap in the beginning and by round 8 neither the fine nor rough cuts overlap. d. The traditional and low segment rough cuts overlap but all the remaining segments do not. e. The High, Traditional and Low segment rough cuts overlap but all the remaining segments do not.
b. The fine cuts overlap in the beginning and in year 8 only the rough cuts overlap.
MTBF is measured in a. day increments. b. hour increments. c. minute increments. d. 30-minute increments. e. 15-minute increments
b. hour increments.
2. If there are two identical products, one that has 100% accessibility and one that has 0% accessibility, a. the one with 0% accessibility will not sell at all because consumers can't find it. b. the product with 100% accessibility will outsell the other 2 to 1 providing all other attributes are identical. c. the one with 0% accessibility will not sell at all because consumers do not know of it. d. the product with 0% accessibility will only sell after all other products have sold in that segment. e. the product with 100% accessibility will outsell the other 3 to 1 providing all other attributes are identical
b. the product with 100% accessibility will outsell the other 2 to 1 providing all other attributes are identical.
5. A segment manager's task is to a. decide which products enter the segment. b. verify the products entering and leaving a segment, the margin potential for those products, capacity level and the distribution system as compared to competitors. c. review margin potential for each segment and evaluate the capacity for each segment compared to the competition. d. evaluate the capacity for each segment based on total demand and the competitor's capacity; evaluate the margin potential of all products and the distribution systems. e. none of the above.
b. verify the products entering and leaving a segment, the margin potential for those products, capacity level and the distribution system as compared to competitors.
100. Investing in CCE/Six Sigma can a. reduce labor and administrative costs. b. increase demand and reduce labor costs. c. reduce labor and material costs. d. increase demand.
c
13. Customers that want low prices and are willing to sacrifice miniaturization and performance are in the a. traditional segment. b. high End segment. c. low End segment. d. performance segment. e. size segment.
c
17. MTBF measures what? a. Price b. Performance c. Reliability d. Size e. Market Segment
c
20. The segments all drift to the lower-right section of the perceptual map. Why does this drift take place? a. Customers want smaller and less expensive products. b. Customers want reliable and affordable products. c. Customers want smaller and faster products. d. Customers want newer and faster products. e. None of the above.
c
23. What happens to a product priced at $1 above or below the segment guideline when a segment's product supply outstrips demand? a. It loses 25% of its appeal. b. It loses 10% of its appeal. c. It loses 20% of its appeal. d. It loses 15% of its appeal. e. None of the above.
c
24. What's the measure for product reliability? a. Return rates of products sold b. Customers' happiness statements c. Expected time a product lasts d. Price e. All of the above
c
30. The Traditional ideal spot is a. near the upper-left corner of its circle. b. near the lower-right of its circle. c. near the center of its circle. d. near the lower-left of its circle. e. near the upper-right of its circle.
c
34. The preferred product perceived age for each sector peaks at: a. one year for high end and five years for low end. b. one year for high end and three years for low end. c. zero years for high end and seven years for low end. d. zero years for high end and three years for low end. e. each segment wants a perceived age of zero.
c
38. Which of the following is not a type of market segment in CapSim? a. Performance b. Traditional c. Standard d. Size e. None of the above
c
42. Which market segment places the most importance on price? a. Traditional b. Performance c. Low End d. Size e. High End
c
50. The relative cost of a product's material cost increases as: a. size is increased. b. performance is decreased. c. MTBF is raised. d. automation stays the same. e. all of the above.
c
54. In Capstone® a. the terms age and perceived age are not used interchangeably. b. the term MTBF means multiple transient business format. c. the terms age and perceived age are used interchangeably. d. all products will eventually have to be retired. e. none of the above.
c
55. When a product is moved to a new location on the Perceptual Map, the Perceived Age (or Age) is: a. not affected. b. doubled. c. divided in half. d. tripled. e. other.
c
59. If you purchase production capacity and automation: a. it is available immediately. b. it is available in 6 months. c. it is available in the next year. d. it is available when you need it. e. none of the above.
c
48. In the Marketing Plan, Research and Development addresses all but the: a. the positioning of each product inside a market segment on the Perceptual Map. b. number of products in each segment. c. age of your products. d. automation of assembly lines. e. reliability of each product.
d
51. R&D completion time can be shortened a. by repositioning a product. b. the more a company changes a product's MTBF. c. when several products are put into R&D at the same time. d. when a company takes advantage of existing technology. e. none of the above.
d
63. What effect do increases in the Promotion Budget have on a product's Awareness? a. Increasing returns b. Constant returns c. Proportionally increasing returns d. Diminishing returns e. None of the above
d
68. All of the following are direct implications of hiring a second shift except: a. increased production capacity. b. paying higher wages to second shift. c. increased training costs. d. increased MTBF. e. increased recruitment costs.
d
79. For Wages, the negotiation Starting Position cannot be less than ____% or more than ____% of the current contract. a. 75; 125 b. 75; 150 c. 80; 125 d. 80; 150 e. none of the above
d
86. Capital needed for company activities cannot be acquired through: a. stocks and bonds. b. profits. c. current debt. d. arbitrarily firing employees. e. all of the above.
d
93. You pay no brokerage fee if you: a. issue bonds. b. retire bonds early. c. retire stocks. d. Allow bonds to mature to their due date. e. issue stocks.
d
3. How many products does every team start with? a. One product b. Four products c. Ten products d. Five products e. None of the above
d. Five products
14. Customers that want small products and are willing to sacrifice performance are in the a. traditional segment. b. high End segment. c. low End segment. d. performance segment. e. size segment.
e
27. MTBF in the segments should be a. MTBF (Performance) > MTBF (High End). b. MTBF (Low End) > MTBF (High End). c. MTBF (Low End) < MTBF (Size). d. a, b, and c. e. only a and c.
e
36. Pricing plays a role a. when repositioning a product. b. in the rough cut stage of the purchase decision. c. in neither stage of the purchase decision. d. in the fine cut stage of the purchase decision. e. in both b and d.
e
44. If you are marketing to High End customers, which criteria are most important to them in order of importance? a. Positioning, Age, Price, MTBF b. Price, Age, MTBF, Positioning c. Age, Price, Positioning, MTBF d. MTBF, Positioning, Age, Price e. Positioning, Age, MTBF, Price
e
47. Which of the following is not addressed by R&D? a. Age b. Reliability c. Number of products in each segment d. Placement of each product inside a market segment e. Workforce Complement
e
52. R&D completion time depends on a. number of projects in R&D. b. automation rating. c. the age of the product. d. size of the product. e. a, b, and c.
e
53. Which Automation rating requires the longest time to reposition a product? a. 1 b. 3 c. 7 d. 9 e. 10
e
57. R&D projects can change a product's: a. size. b. age. c. reliability. d. performance. e. all of the above
e
75. Depreciation is calculated: a. using a 3-year MACRS. b. using a 5-year MACRS. c. over a straight line 5-year period. d. over a straight line 10-year period. e. over a straight line 15-year period.
e