Capsim Exam Questions and Answers

Capsim Exam Questions and Answers Products are invented and revised by which department? Research and Development What is the industry newsletter called? Capstone Courier Which of these investments is not a function of the Production department? Wage Increases What are your company's options for raising money? Borrowing Long-term debt Borrowing Short-term debt Issuing Stock Prices are established by the: Marketing Department The Proformas are dynamic financial statements that recalculate based on your decisions, true or false? True Who is responsible for one of the five products in your starting product line? Product Manager Who is responsible for one of the five market segments? Segment Manager Who is responsible for R&D, Marketing, Production, or Finance? Functional Manager Who is responsible for predicting the behavior of one or more of your competitors? Competitive Intelligence Officer For every dollar above the price range will lose how much demand for your product? 20% Automation ratings are used to... Automation ratings can be anywhere from... The higher the automation rating; determine labor costs. 1.0 to 10.0 the lower the labor cost It takes how long to add more capacity or automation to a product line? One year The company will receive how much of the original purchase price when you sell capacity? 65% Issuing more shares (does what) to your available cash but it will also (does what) your stock price? increases, dilutes Issuing long term debt will increase your available cash but your company will have to pay an (?) for this loan moving forward. interest expense Bonds are sold as a (?) year note, which are not due until (?) years from the point you issued them. 10, 10 Current debt will be repaid next year but has a (higher/lower) interest rate than long term debt. lower When do you retire stocks or bonds? when the company has excess retained earnings left over at the end of the year. Proformas are essentially if-then statements, which means... If your decisions come true then this is what everything will look like at the end of the year. What might you do if net investments increase? You may need to increase your borrowing in finance to help pay for the additional investment. Action Steps: 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 Reposition a product Action Steps: 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 Marketing a product Action Steps: 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 Scheduling production Action Steps: 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 Modifying plant and equipment Action Steps: 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 Raising money and paying debt Action Steps: 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 Inventing a new product What is a simulation? An abstraction of reality 2 issues for group consideration -Formal interactions (organizing for company) -Group development 3 ways to formally organize a group 1. By Function (CEO, VP. R&D, VP Marketing, VP Production, VP Finance, etc) 2. By Brand (CEO, Manager Traditional, Manager Low end, Manager High End, Manager performance, etc) 3. Everyone does everything