Capsim Exam Questions
What customer segment(s) does your company sell your product to? - ✔✔Low tech and
high tech
Two expectations customers have that are part of the Customer Buying Criteria -
✔✔Positioning and pric
...
Capsim Exam Questions
What customer segment(s) does your company sell your product to? - ✔✔Low tech and
high tech
Two expectations customers have that are part of the Customer Buying Criteria -
✔✔Positioning and price
Two of the scoring methods you are measured on in the simulation - ✔✔Sales and
contribution margin
What decisions are made in the R&D department? - ✔✔Performance, size, and
reliability
What does promo budget determine? - ✔✔Customer Awareness, and your Sales
Budget determines Customer Accessibility
When a product's positioning (Performance/Size) is updated, what happens to the
product's age? - ✔✔It cuts in half
What is Contribution Margin defined as in the simulation? - ✔✔Sales - Variable Costs
What decisions are made in the marketing department? - ✔✔Price, forecast, and sales
budget
Before you schedule a production order, you should... - ✔✔consider your left over
inventory from last year
After your company purchases capacity, how much time does it take to be able to use
the added capacity? - ✔✔1 year
You can produce ________ your capacity by running a full ________ - ✔✔Twice ;
second shift
What department decisions are key to executing your plan? - ✔✔R&D
What is reliability? - ✔✔How long the product will last. The more reliable, the more it
costs to produce
What is age? - ✔✔How old customers perceive your product to be
What happens to the age of a new product? - ✔✔It will have an age of 0 on its release
date
What happens to high tech products if you update them every year? - ✔✔Keeps
positioning on the cutting edge and product's age closer to 0
What is the least important feature for low tech customers? - ✔✔Positioning. Not
updating your product each year will allow the product to age towards their preference
(3 years).
Positioning is comprised of a product's... - ✔✔performance and size
If your revision does not complete until next year... - ✔✔you will not be able to make
updates next year
What could a high reliability do if you're trying to keep prices low? - ✔✔hurt your
Contribution Margin
What is a low tech customer's top priority when purchasing a product? - ✔✔Price
What is one of the most important decisions marketing makes? - ✔✔Sales forecasting
What is key to sales forecasting? - ✔✔applying the growth rate to last year's sales
What is it called when you run out of units to sell during the year? - ✔✔Stock out
What is the "best case" scenario for production? - ✔✔using 12 months as a baseline,
and ordering an extra month or two worth of inventory
Why is Production after Adjustment slightly lower than Production Schedule? -
✔✔Some units will have defects and will be thrown out
How much more inventory should you produce than your forecast? - ✔✔10%
How is capacity in the production interface represented? - ✔✔the number of units that
can be produced in one shift (although, the sensor industry uses plants with two shifts)
What two things should you consider when purchasing capacity? - ✔✔1. Capacity
purchases take a year to implement. In other words, if you buy capacity this year, you
won't be able to use it until next year
2. Adding capacity is quite expensive. Don't purchase more than you will need during
the next year or two, as it is costly to have idle capacity in a factory not being properly
utilized
What are the three ways to raise capital in finance? - ✔✔Borrowing current debt, issuing
stock, and borrowing long-term debt
What does it mean to borrow current debt? - ✔✔they are one-year loans that are paid
off January 1 next year
What does it mean to issue s
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