Capism - Capstone Quiz

The Proformas are dynamic financial statement that recalculate based on your decisions. - True - False

True

Which of these investments is not a function of the production department? - Increasing Automation - Wage Increases - Creating new production lines

Wage Increases

What are your company's options for raising money? A. Borrowing Long-term debt B. Borrowing Short-term debt C. Issuing Stock - A and C only - A, B and C

A, B and C

Inventing a new product

A. Action steps include: Research the opportunity in the segment in the Courier Select appropriate product attributes - Performance, Size, MTBF Display the R&D worksheet. Enter the product attributes Note the R&D completion date Display the Production worksheet Order capacity and automation (optionally, wait a year) Display the Finance worksheet Fund the plant with stock and bond issues Save the decisions

Marketing a Product

B. Action steps include: Research the competitive environment in the Courier Display the Marketing worksheet Enter decisions for Price, Promotion and Sales Budgets Observe the decision impact upon the computer's forecast Develop a worst case estimate for demand Enter your worst case estimate for in the sales forecast Save the decisions

Modifying plant and equipment

C. Action steps include: Estimate peak demand for each product for this year and next year Examine unit costs and margins Display the Production worksheet Increase or decrease capacity as required Increase automation as required Observe the net cost of the investment Display the Finance worksheet Fund the investment with a mix of stock issues, bond issues, and depreciation Save the decisions

What is the industry newsletter called? - Capstone Courier - Capstone quarterly - Capstone Messenger

Capstone Courier

Reposition a Product

D. Action steps include: Research current customer buying criteria in the Courier Display the R&D worksheet Adjust Performance, Size, MTBF Observe impacts upon Age, material cost, and completion dates Save the decisions

Scheduling Production

E. Action steps include: Estimate a best case for demand for each product this year Display the Production worksheet Observe existing inventory Schedule production to meet best case demand less existing inventory Save the decisions

Raising money and paying debt

F. Action steps include: Examine the proforma Income Statement Examine the proforma Balance Sheet Display the Finance worksheet Issue or repurchase stock as required Issue or repay bonds as required Issue short term debt as required Issue a dividend as required Save the decisions

Prices are established by the: - Finance Department - Marketing Department - Production Department - R&D Department

Marketing Department

Products are invented and revealed by which department? - Marketing - Production - Research and Development - Finance

Research and Development