Capsim Post-Exam Study [100% Correct Answers]

Capsim Post-Exam Study [100% Correct Answers] After your company purchases capacity, how much time does it take to be able to use the added capacity? *Ans* 1 year Before you schedule a production order, you should... *Ans* consider your left over inventory from last year How is capacity in the production interface represented? *Ans* the number of units that can be produced in one shift (although, the sensor industry uses plants with two shifts) How much more inventory should you produce than your forecast? *Ans* 10% If your revision does not complete until next year... *Ans* you will not be able to make updates next year Issuing dividends *Ans* Giving money to shareholders per share each year. This slightly helps increase your stock price when you have excess cash Positioning is comprised of a product's... *Ans* performance and size Retiring long-term debt *Ans* Paying back bonds early prior to their 10-year due dates. This helps reduce interest payments, but is typically best used in later rounds Retiring stock *Ans* Buying back shares of common stock from the public. This reduces the number of shares outstanding, but this is best reserved when you have excess cash Two expectations customers have that are part of the Customer Buying Criteria *Ans* price Positioning and Two of the scoring methods you are measured on in the simulation *Ans* Sales and contribution margin What are the three ways to raise capital in finance? *Ans* borrowing long-term debt Borrowing current debt, issuing stock, and What could a high reliability do if you're trying to keep prices low? *Ans* hurt your Contribution Margin What customer segment(s) does your company sell your product to? *Ans* What decisions are made in the marketing department? *Ans* What decisions are made in the R&D department? *Ans* What department decisions are key to executing your plan? *Ans* What does it mean to borrow current debt? *Ans* Low tech and high tech Price, forecast, and sales budget Performance, size, and reliability R&D they are one-year loans that are paid off January 1 next year What does it mean to borrow long-term debt? *Ans* What does it mean to issue stock? *Ans* Bond issues that are due in 10 years To sell shares common stock to the public What does promo budget determine? *Ans* Customer Awareness, and your Sales Budget determines Customer Accessibility What happens to high tech products if you update them every year? *Ans* cutting edge and product's age closer to 0