capsim

a. take longer to move the product across the Perceptual Map.

146. If a product's Automation rating is substantially increased, it will:

e. The labor strike.

261. What does not drive length of R&D project?

e. in both b and d.

36. Pricing plays a role

b. Price

37. What are the top buying criteria that low end customers most value?

c. $2,000,000

115. If you are currently producing 100,000 units at an automation level of 5, how much would it cost to maximize automation?

b. $24 million

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?

d. $5.

118. If a product's Price was $20, its Material $8, and its Labor $7, the Margin Per Unit would be:

e. none of the above

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?

b. Reliability component cost and positioning component cost

120. In the Capstone® simulation, what are the components of a product's minimum material cost?

a. $5.10.

121. The reliability component cost of a product with a 17,000 hour MTBF rating is:

e. none of the above.

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:

d. all of the above.

123. A point or some points you consider for your strategy are

e. both a and b

124. In Capstone®, the spreadsheets allow team members to

e. both a and b.

125. Each of the spreadsheets

d. All of the above

127. Using the R&D Spreadsheet to design your products, you have which of the following projects to choose from?

c. 1 year

128. What is the minimum amount of time that it takes to create a new product?

d. All of the above

129. What are the drivers of Material Costs?

d. Reliability

191. What product attributes do Performance customers value the most?

d. 12%

192. At what rate is inventory carrying cost charged?

a. traditional segment

193. Customers that want proven products and current technology of moderate size and performance are in the

b. high end segment

194. Customers that are willing to pay for products with cutting edge technology that are fast performing and small in size are in the

a. Price and Reliability

195. What two factors are considered in both the rough cut and fine cut of the customer buying process?

b. low automation levels.

117. Rapid movement of an existing product on the Perceptual Map requires

b. hour increments.

12. MTBF is measured in

b. Research and Development

126. New products are created on which spreadsheet?

a. there is a 1 year lag.

134. When going to a new automation level

d. 20%

196. 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?

d. Upper Left

197. What section of the perceptual map is considered ideal for the low end segment?

b. Increases

198. Increasing performance and shrinking size does what to the material cost?

a. awareness.

199. The promotion budget affects:

b. the product with 100% accessibility will outsell the other 2 to 1 providing all other attributes are identical.

2. If there are two identical products, one that has 100% accessibility and one that has 0% accessibility,

c. Customers want smaller and faster products.

20. The segments all drift to the lower-right section of the perceptual map. Why does this drift take place?

d. 25%

200. What is the starting awareness percentage of a new product?

a. $500,000 per product.

201. When investing in web media, diminishing returns apply after

d. $300,000 per product.

202. When investing in Trade Shows, diminishing returns apply after

b. have at least two products in the same segment's fine cut.

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

d. 5, 3

204. At the start of the simulation, your production plant has ___lines with room for ____more

a. 65% of the original value.

205. If you sell off a production line (capacity and automation), the amount of cash that the company will receive from the sales of capacity will be

e. 12

206. Inventory Carrying Cost is ___% of the average cost of production.

d. Age

207. Traditional customers consider this buying criteria to be the most important

a. Positioning

208. What is the most important criteria to a "High End Segment" customer?

a. Positioning

209. Size Segment customer consider this buying criteria to be the most important

d. down; right

21. Over time, the segments will drift in which direction on the Perceptual Map?

c. at least one year

210. It takes ______ years to invent a product.

b. automation rating.

211. A new unit of capacity costs $6 for the floor space plus $4 times

b. R&D, Marketing, Production, Finance, Human Resources & TQM.

212. A functional manager is responsible for coordinate strategy and tactics across all functional areas of the company exemplified by

c. 5

213. How many market segments are there?

b. Age

214. Which of the following buying criteria does not have a rough cut?

b. $600,000 per product.

215. When investing in E-mail, diminishing returns apply after

c. Group of customers with similar purchasing concerns

216. What is a market segment?

a. is never more than 150% of the current contract.

217. The company's negotiation starting position for wages

b. 84 days.

218. Labor will strike for a maximum:

a. Increases; 0.5%; Decrease

219. The interest rate on a bond ______ by________ for each______ in the bond rating category.

b. Traditional

22. When tracking market segments on the performance and size perceptual map, which segment moves or "drifts" the slowest?

d. 5%; 1.5%

220. You are charged a ______ brokerage fee to issue bonds and ______ brokerage fee if you retire bonds prior to their maturation date.

d. dividing net profit by the number of shares outstanding.

221. EPS (Earning Per Share) is calculated by

b. GEMI Sustainability

222. Which of the following is not a Process Management Initiative available to your company?

e. Forecasting Analysis.

223. Which of the following is not one of the five parts to the Situation Analysis:

b. 50%

224. Products that are halfway between the fine and rough cut circle will experience a drop in customer survey score by:

d. decrease labor costs.

225. Quality Initiative Training can

d. reduce material costs and administrative costs.

226. Investing in Vendor Just In Time can

b. $6 + ($4 x Current Automation Level).

227. Adding one additional unit of capacity costs

c. $0.30

228. How much does it cost for MTBF per 1,000 hours of reliability?

e. The Negotiation Ceiling is always 10% above the Starting Position.

229. How are the Starting Position and the Negotiation Ceiling related?

c. It loses 20% of its appeal.

23. What happens to a product priced at $1 above or below the segment guideline when a segment's product supply outstrips demand?

e. All of the above

230. Labor costs are driven by:

a. High End and Size.

231. The sales channel effectiveness for the outside sales people is highest for

b. Size and Performance.

232. The potential reach for web media is rated as good for the

c. 500,000; 1,000,000

233. A 6 month project in R&D costs____________; while a 12 month project in R&D costs ________.

c. Traditional and Low End.

234. The potential reach for print media is rated as good for the

e. Book value, Earnings per Share, and Dividend.

235. Stock price is a function of:

a. If you offer no credit, customer survey score falls to about 60% of maximum.

236. Which of the following is true about the Accounts Receivable Lag and its implications on customer survey score?

d. 26%.

237. If your company offers 90 days Account Payable policy, suppliers will start to withhold material for production at

e. the interest rate is 12.6%; due on December 31, 2005.

238. A bond with the number 12.6S2005, indicates that:

d. reduce R&D cycle time and enhance the effectiveness of the promo and sales Budgets.

239. Investing in Quality Function Deployment Effort can

c. Expected time a product lasts

24. What's the measure for product reliability?

a. reduce R&D cycle time and lower R&D costs

240. Investing in Concurrent Engineering can

a. increase demand.

241. Investing in Channel Support Systems can

b. Automation

28. Which of the following are not buying criteria?

d. 1.0; 10.0

280. Automation levels are given on a scale of _____ to _____.

b. Have absolutely no debt.

281. Which of the following will give your company an AAA bond rating:

d. Are perceived to be half the age as before entering R&D.

282. Products that are modified through R&D:

c. Size and High End.

283. The order of the 4 buying criteria is the same for the following two segments:

d. Emergency Loan.

284. Which of the following will result in the highest interest rate:

c. it had an MTBF at the middle of the expected range.

285. In the December customer survey, a product would not receive a perfect score of 100 if

e. All of the above.

286. Each product can be promoted by

b. Low end customers want the high performance and large sized product.

287. Which one of the following statements regarding preferred position in fine cut is false?

e. a and d.

288. The turnover rate

d. 1 hour difference in training.

289. Workers will not strike approximately 7 days for

a. the potential number of customers who would see the advertisement message

290. In promo budget of the advanced marketing module, the term "reach" refers to

e. All the above

291. Capital used for financing activities can be acquired through_______________.

b. 2.5

292. The inner fine cut circles on the perceptual map have a radius of ________ units.

b. +0.7, -0.7

293. Every year the Traditional segment circle drifts ____ in performance and _____ in size.

e. Size

294. The growth rate for industry demand in the _____ segment is 18.3%.

c. First Shift Capacity X [$4 X (8 - Automation Level).

295. The cost to increase automation to 8.0 is equal to

a. $5,000

296. Companies can enter a Recruiting Spend budget up to an additional ____.

c. prices are below average.

297. The following describe the strategy of Differentiation with Product Lifecycle Focus, except:

a. little or no additional improvement.

327. Investing more than $5,000,000 in the same TQM initiative over a two or three year period creates

a. the number of workers in your workforce this year.

328. According to Capstone, Complement is best defined as:

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.

5. A segment manager's task is to

c. MTBF is raised.

50. The relative cost of a product's material cost increases as:

d. when a company takes advantage of existing technology.

51. R&D completion time can be shortened

e. a, b, and c.

52. R&D completion time depends on

e. 10

53. Which Automation rating requires the longest time to reposition a product?

c. the terms age and perceived age are used interchangeably.

54. In Capstone®.

c. divided in half.

55. When a product is moved to a new location on the Perceptual Map, the Perceived Age (or Age) is:

a. have no impact on Perceived Age.

56. Changing MTBF will:

e. all of the above.

57. R&D projects can change a product's:

b. One round prior to product release

58. If your team decides to introduce a new product, when should capacity and automation be purchased?

c. it is available in the next year.

59. If you purchase production capacity and automation:

b. The fine cuts overlap in the beginning and in year 8 only the rough cuts overlap.

6. What is the difference between the market segments at the beginning of the round to the final round?

c. Price, Place, Promotion, and Product

60. Marketing is concerned with 4 things. What are they?

c. decreasing returns over time.

61. An increase in promotional budgets have:

c. diminishing returns.

62. Promotion efforts are subject to

d. Diminishing returns

63. What effect do increases in the Promotion Budget have on a product's Awareness?

c. 67%

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

b. Accessibility on a scale of 0 to 100%

65. How is the strength of the sales channel measured?

c. 3

66. If you drop your sales budget to zero, accessibility drops to 0% in how many years?

c. accessibility drops to 0% in three years.

67. If your company has a sales budget of $3 million and drops it to zero,

d. increased MTBF.

68. All of the following are direct implications of hiring a second shift except:

b. Add a second shift.

69. How can assembly lines double their capacity?

e. A, B, and C

7. Successful managers will:

a. $12 per unit of capacity.

70. If you increase automation from 2.0 to 5.0, the cost is:

a. The product requires increased time/expense for subsequent short-move repositioning.

71. What is one drawback of increasing automation?

b. incur a retooling cost.

72. If you reduce automation in the production component of Marketing, you will:

c. 13,000,000

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?

c. $400,000.

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

e. over a straight line 15-year period

75. Depreciation is calculated:

e. b, c, d

76. Which three factors drive labor cost?

b. $8/hour

77. If current wages are set at $10/hour, what would be the minimum starting pay that your company would offer?

c. $18.00 to $35.00

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?

d. 80; 150

79. For Wages, the negotiation Starting Position cannot be less than ____% or more than ____% of the current contract.

a. True

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.

e. all of the above.

80. Labor Negotiation includes:

c. all strike settlements should be halfway between the demand and the negotiation ceiling.

81. To run perfectly, all HR department managers should know that

c. Reliability

17. MTBF measures what?

d. arbitrarily firing employees.

1. Capital needed for company activities cannot be acquired through:

a. Enable

1. When opening the Excel version of Capstone®, you should do what to Macros?

c. Products become smaller and smaller.

10. What trend can be explicitly observed in the industry in which your company is operating?

c. reduce labor and material costs.

100. Investing in CCE/Six Sigma can

c. increase demand.

101. Within the Process Management Initiatives, channel support systems

d. Administrative Cost.

102. Benchmarking reduces

c. Quality Function Deployment Effort

103. Which of the following is an example of a TQM initiative?

d. reduces R&D cycle time.

104. Within the process management initiatives, concurrent engineering

c. 5

105. The situation analysis consists of ______ parts.

e. all of the above.

106. The situation analysis is

a. Performance, High End, and Size

107. Which three customer groups "ride the wave of technology" and are considered to be in the high technology segments?

a. the goal is to determine the ideal spot location for each segment during the 8 years.

108. When plotting the segment locations for each round

c. Are the market segments growing at the same rate?

109. Which of the following questions is answered by the demand analysis?

a. 0%

11. On perceptual map, the percentage of customers interested in a product positioned outside of the rough cuts of that product is

c. it is easy to confuse unit market size with dollar market size.

110. Two points that should be considered in your strategy are

b. $10 million

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.

b. $4,600,000

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?

d. Investment = Capacity x [$6 + ($4 x Automation)]

113. What is the right formula for capacity investment?

a. $60,000

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?

d. Performance

188. Sales channel effectiveness for inside salespeople is highest for

c. low End segment.

13. Customers that want low prices and are willing to sacrifice miniaturization and performance are in the

d. all of the above.

130. The marketing spreadsheet is used to set which of the following:

d. a, b, and c.

131. The A/R lag is

e. a, d.

132. What happens to a company when it increases the A/P lag?

e. both b and c.

133. The automation level

c. 10% above the starting positions.

135. Negotiation Ceilings which represent the maximum management is willing to pay are always

a. the upper limit in thousands of dollars that teams can issue in stock this year.

136. Maximum issue is

c. the cash position at the beginning of the round and a projection of the cash position at the end of the round.

137. Cash position is

e. All of the above.

138. What effects do Process Management Initiatives have?

e. all of the above.

139. Your team will make decisions for

e. size segment.

14. Customers that want small products and are willing to sacrifice performance are in the

b. Low End customers

140. Which customer group or market segment seeks proven products using current technology?

b. Low End customers

141. Which customer group or market segment seeks proven products, are indifferent to technological sophistication, and are price motivated?

c. High End customers

142. Which customer group or market segment seeks cutting edge technology in both size and performance?

d. Performance customers

143. Which customer group or market segment seeks high reliability, advanced technology products that emphasize high performance?

e. Size customers

144. Which customer group or market segment seeks advanced technology products that focus on small size?

a. The day the R&D project completes

145. Repositioning moves a product on the Perceptual Map from its old location to a new one. When does the new location become active?

d. 1 year; 1 year

147. There is ______ lag in buying new Capacity and ______ lag in changing Automation.

c. Employee turnover

148. Which of the following is not a primary concern for your Finance Department?

c. Cost Leader with Product Life Cycle Focus

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. Customers (Market Segment).

15. In Capstone©, pricing standards are set by:

a. Broad Cost Leader

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.

e. Broad Differentiation

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.

b. Niche Cost Leader

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.

b. reliability and positioning.

189. The performance segment places more importance on

b. Performance

190. Which market segment places the most importance on reliability?

a. Niche Differentiation

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.

d. Outside Sales, Distributors, and Inside Sales.

154. The resources used in the Sales Budget are

c. $50,000.

155. When working with inside sales, each inside salesperson costs

b. $100,000.

156. When working with Distributors, each distributor costs

d. $125,000.

157. When working with Outside Sales, each salesperson costs

c. 15.

158. In only one product segment, diminishing returns for distributors is reached at

e. 30.

159. In only one product segment, diminishing returns for inside sales is reached at

a. Mean Time Between Failure.

16. "Reliability" is expressed in terms of:

b. 12.

160. In only one product segment, diminishing returns for outside sales is reached at

b. Print Media, Direct Mail, Trade Shows, E-Mail, and Web Media.

161. The marketing budget detail sales screen allows companies to allocate their promotion budget to different media channels. These media channels are:

a. $700,000 per product.

162. When investing in print media, diminishing returns apply after

e. Size and Performance.

163. The potential reach for E-mail is rated as good for the

b. High End.

164. The potential reach for Trade Shows is rated as good for the

b. each Product.

165. The Promotion part of advanced marketing allows teams to allocate their time based on

b. make a greater effort by the sales staff which translates into increased demand for that product.

166. The time allocation on the advanced marketing module can be used to

d. the price is at the low end of the range and the positioning, age and MTBF are superior.

167. In forecasting, it is not likely that you will take half of the sales unless

b. customer survey.

168. A product's demand is driven by

c. 4Ps.

169. The customer survey score is driven by

a. improve business procedures, resulting in improved efficiencies and cost structures.

170. Process Management Initiatives

b. improve product quality while reducing the time and resources required to design, manufacture, warehouse and ship products.

171. TQM initiatives

c. Continuous Process Improvement systems (CPI)

172. This process management initiative reduces material cost and, to a lesser degree, labor costs.

b. Vendor/Just-in-Time Inventory (JIT)

173. This process management initiative reduces material costs and administrative overhead.

d. Quality Initiative Training (QIT)

174. This process management initiative reduces labor costs.

d. Channel Support systems

175. This process management initiative increases the effectiveness of the Sales Budget and therefore demand.

a. Concurrent Engineering (CCE)

176. This process management initiative reduces R&D cycle time,

b. Quality Function Deployment and Benchmarking

177. These TQM initiatives reduce administrative overhead; reduces the R&D cycle time and enhances the effectiveness of the promotion and sales budget.

a. Concurrent Engineering

178. The TQM initiative reduces material costs and labor costs.

d. 33%.

179. If there are 4 products listed in the Capstone Courier in the traditional segment that have a customer survey scoring of 32, 28, 22 and 14, then the top product's demand would be:

a. Performance and Size.

18. The two characteristics that the perceptual map evaluates are

c. divide the top product segment's score by the sum of all other scores in that segment (not counting fringe products).

180. One of the ways of calculating the top product's demand is by

c. positioning.

181. Combining size and performance creates a product attribute known as

b. Increases in capacity and changes in automation take a full year to implement. Sales of capacity are immediately effective.

182. Which statement is true?

d. to make up 27.5% of the electronic sensor market in five years from now

183. The traditional market segment is expected

c. Traditional and Low.

184. The sales channel effectiveness for the distributors is highest for

c. $800,000 per product.

185. When investing in direct mail, diminishing returns apply after

c. Traditional and Low End.

186. The potential reach for direct mail is rated as good for the

b. Differentiation Strategy with a Product Life Cycle Focus

187. This strategy will gain competitive advantage by distinguishing our products with an excellent design, high awareness, easy accessibility, and product extenders. We will develop R&D competency that keeps our designs fresh and exciting. Our products will keep pace with the market, offering improved size and performance. We will price above average. We will expand capacity as we generate higher demand in our markets: High, Traditional and Low End.

c. I would only need to create 33% new awareness to maintain 100% this year.

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

c. 8

243. Teams can produce up to ______ products.

d. 2000.

244. A production line with 1000 units of capacity has a max production capability of:

b. in 1 year.

245. When purchasing increased Capacity and Automation, the new capacity becomes available

d. entering a negative number in the Buy/Sell row on the Production Spreadsheet.

246. Capacity is sold by

a. Sell all the capacity on the corresponding production line

247. Your inventory for a product will be automatically liquidated at half average cost of production if you

b. 7.5%

248. Emergency loans are made at what rate over the normal Current Debt interest rate?

c. drifts at same pace as the segment.

249. The Ideal Spot

b. $5

25. At what dollar amount above the segment guidelines is all consumer appeal lost?

d. high technology segments.

250. Ideal Spot is particularly important for

b. 5 assembly lines with space to add 3 more.

251. What is the size of the plant at the start of the simulation?

d. CPI, UNEP Green, JIT, QIT, Channel Support Systems, Concurrent Engineering

252. What are the Process Management Initiatives?

c. one year.

253. Each round is the equivalent of

a. Three levels (such as Good, Fair, or Poor)

254. The Consumer Report rates product attributes of price, reliability, age, positioning, awareness and accessibility using:

d. There is more information.

255. If you see a red flag on one of your spreadsheets, what does it mean?

d. Promotion

256. Which one of these criteria is not a top product characteristic of at least one segment?

c. percentage of Customers who knew about the product.

257. Customer Awareness Reports:

c. High End preferred Position is located in the lower left of the circle.

258. For positioning in the fine cut, which one is not right?

b. T-Bills

259. Which one is not the source of acquiring capital?

a. drop by $0.50 each year.

26. The prices in each segment

c. 53%

260. Price accounts for _________customers' decision-making in the low end sector.

a. 33%

262. With each year (round) customer awareness for each product decreases by:

c. $2.0M

263. Diminishing returns for a single year and a single initiative on TQM budgets become noticeable at

c. 2 years.

264. High end customers prefer a product age of 0, at what age exceeds the fine cut for the product

a. about $3M

265. For non-advanced marketing module, promotion expenditures reach diminishing returns at

b. 9% of decision.

266. In the High End Segment, price as a buying criteria accounts for:

d. Broad Cost Leader

267. Companies with this strategy state their vision as follows: Low priced products for the whole industry, our brands offer solid value. Our primary stakeholders and bondholders, customers, stockholders and management.

c. 47% of decision.

268. In the Traditional Segment, age as a buying criteria accounts for:

d. a and b.

269. An accessibility of 60% means that ________.

e. only a and c.

27. MTBF in the segments should be

d. 50 %

270. How much higher are second shift wages than the first shift wages?

b. 150

271. The accounts payable lag has implications for production. At ________ days, suppliers withhold all material.

a. +0.7 performance, -0.7 size

272. The center spot of traditional products drifts _______ each year.

c. after the other departments have entered their decisions.

273. Finance Decisions should be made

b. a liquidation instruction and will sell your remaining inventory for half the average cost of production.

274. If you sell all the capacity on a production line, Capstone interprets this as

e. All of the Above.

275. Customers evaluate the sensor industry based on:

e. a, b, and c

276. When the Human Resources module is activated, which areas must be addressed?

d. Age

277. A product's __________ does not play a role in the rough cut

b. Customer Survey Score

278. In CapSim, a product's demand is driven by its

b. Market Share Report

279. The ______________ details sales volume in all segments, reporting each product's actual and potential sales.

a. On the Marketing spreadsheet enter your worst case forecast in Your Sales Forecast cell, and on the Production spreadsheet enter your best case forecast in the Production Schedule cell.

298. One way to enter sales forecasts and production schedules is to develop a worst case/best case scenario. Where would you enter your best case scenario and where would you enter your worst case scenario?

e. All of the above.

299. Which of the following statements is true about promo and sales budget?

d. Five products

3. How many products does every team start with?

c. near the center of its circle.

30. The Traditional ideal spot is

e. Deciding promo and sales budget.

300. Which of the following is not one of the primary concerns in the Finance Department?

e. In the size segment performance drifts by -0.7 and size by +1.0.

301. Which of the following is not the correct yearly drift rate for the corresponding segment?

a. sensor industry

302. The CAPSIM simulation is based on which industry?

c. R&D

303. Your ___________ department controls the performance and size, therefore position of your sensor products within the market.

c. fine cut and rough cut

304. Customers go through ________________stage(s) as they make their purchase decisions.

b. 60, 93, 99.3

305. Account Receivables lag impacts sales. At no credit terms, the customer survey score falls to about ______ % of maximum, at 30 days, the score is _____ %, at 60 days, the score is ______%.

a. True

306. Decisions on a product's prices and MTBFs in its segment's rough cut can also affect the product's demand.

a. HR

307. Which module in CAPSTONE allows investment in workforce training?

b. higher productivity, lower turnover

308. Investments in training leads to a __________ and _________.

b. Where competitors underperform, a company may have a higher market share than that of its competitors though it is not making best use of its resources.

309. In what circumstance would a company have a high market share relative to that of its competitors, though it is not making best use of resources available to it?

b. Higher material cost

31. Increasing a product's reliability will result in which of the following changes to production costs?

d. ((1+accessibility)/2)*base score = 20

310. A perfect product (with 100% awareness) starting with a survey score of 100, what is the survey score if the accessibility rate is only 60%?

a. You cannot manufacture your new product.

311. What is most likely to happen on introduction of a new product, if you do not buy the production line, in the year prior to the product's introduction?

d. 3 years

312. R&D project length can be as long as ___________.

c. When a former monopoly was broken up into identical competitor

313. Your company was formed ______________

c. Price - (Material cost + Labor cost)

314. How is Contribution Margin calculated?

d. Turnover rate.

315. The percentage of workers that left the company last year is the:

b. 3.0 and 5.0.

316. At the start of the simulation, all assembly lines have an automation level between:

d. $0.50

317. Segment price ranges drop _____ per year.

e. AAA to D

318. Each year the company receives bond ratings. The range of these bond ratings from best to worse is:

b. how customers perceived the products in the segment.

319. The December Customer Survey indicates

b. Product Age.

32. Age refers to:

d. all of the above.

320. Period costs include

c. a charge.

321. Lowering the automation level will result in

e. all of the above.

322. If all of the capacity on a production line is sold

c. Fund long term investments in capacity and automation.

323. As a general rule, stock issues are used to:

d. Performance

324. Which segment has the highest growth rate?

d. the company under produced and missed sales opportunities.

325. Looking at the production, if the potential bar is higher than the actual one,

c. the company picked up sales because other companies under produced.

326. Looking at the production, if the potential bar is lower than the actual,

a. High End

329. Capstone's definition of reach in the marketing module is defined by the potential number of customers who would see the message. Based on this definition what segment has "fair" reach with direct mailing?

a. It is reduced by 50%.

33. What happens to a product's Perceived Age when it is repositioned in R&D?

a. Marketing spreadsheet

330. Where are the credit policies for customer and supplier set in Capstone.xls?

b. Proformas are projections of results for the upcoming year; annual reports are results from the previous year.

331. The primary difference between the Proformas and annual reports is:

b. Marketing sales forecasts

332. What is the most important element that ensures the accuracy of the Proformas reports?

c. The year prior to its introduction

333. When should you purchase the production line to produce a new product?

c. Customer survey

334. Which tool can you use as a quick comparison tool when conducting a competitive analysis concerning production?

b. The inner fine cut circles represent the heart of the segment where demand is strong.

335. In the Perceptual Map each segment has a set of circles where:

b. High End, Performance and Size drift at a faster rate than the other segments.

336. Different customer demands impact the drifting speed of the segments such that:

a. Production & human resources

337. Which screens are necessary to make a complete human resource decision when the advance module has been activated?

a. Current asset minus current liability

338. What is working capital?

e. Both a and b are correct.

339. What happens if you increase the A/R lag days in the marketing function?

c. zero years for high end and seven years for low end.

34. The preferred product perceived age for each sector peaks at:

e. All of the above are important

340. Which of the following is an important about working capital in Capsim?

a. Teams cannot produce beyond 100% capacity.

341. Which is false about production in Capsim?

a. 2

35. At which point does the perceived age of a traditional product peak?

c. Standard

38. Which of the following is not a type of market segment in CapSim?

d. Price for low end and Positioning for high end.

39. What is the correct answer concerning the top buying criteria for the following segment:

a. Traditional, Low End, Performance

4. What are three of the five Segments?

a. Price, Age, Positioning, Reliability

40. Low End customers emphasize buying criteria in which order?

b. a different emphasis on features of the 4 buying criteria.

41. Each segment places

c. Low End

42. Which market segment places the most importance on price?

a. Price

43. What is the most important criterion to a "Low End Segment" customer?

e. Positioning, Age, MTBF, Price

44. If you are marketing to High End customers, which criteria are most important to them in order of importance?

d. Logistics

45. Which one is not an area in which Capstone® separates company activities?

d. Labor Negotiations.

46. The following represent core company activities that must be addressed each year except:

e. Workforce Complement

47. Which of the following is not addressed by R&D?

d. automation of assembly lines.

48. In the Marketing Plan, Research and Development addresses all but the:

b. immediately upon completion.

49. When an R&D effort started in 2001 completes on September 15, 2002, the product revision kicks in

a. 2 weeks

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?

e. all of the above.

83. In the Human Resources section, workers will strike one week for:

Issues, Bond Issues, and Profits

84. The Finance Department can use which of the following methods to acquire capital for company activities?

e. all of the above.

85. Your finance department is primarily concerned with

b. Increased production capacity

87. Which financial obligation is best satisfied with Bond Issues?

e. c, d

88. What happens to a company when its debt-to-assets ratio increases?

b. 10.5%

89. What is your bond rate? The prime rate is 10%; your current bond rating slipped one category (from AAA to AA).

e. As many times as you want

9. Once you upload your official decisions during a round, how many times can you change them before the end of the round?

a. R+2.5%

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

c. 13.5%.

91. If your interest rate is 12.1%, and when you issue new bonds, the bond interest rate is:

a. True

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%).

d. Allow bonds to mature to their due date.

93. You pay no brokerage fee if you:

c. 6.5S2003

94. In Capstone® what would the bond number be for a bond with an interest rate of 6.5% that matures in 2003?

b. 5%; 1.5%

95. You are charged a ____ brokerage fee to issue stock and ____ brokerage fee to retire stock.

e. a, c.

96. The Credit Policy Lag has implications for:

c. increase Labor Costs.

97. Budgeting money to Quality initiative will lead to these outcomes except:

b. Budgeting money to quality initiatives

98. How can the R&D cycle time be reduced?

c. reduce material costs and labor costs to a lesser degree.

99. Investing in CPI can