Capsim (Test 1) Questions and Answers

Capsim (Test 1) Questions and Answers FastTrack Report extensie year-end report. includes customer buying patterns, product positioning, and public financial records Buying Criteria price, age, mtbf, and positioning Price high tech: doesnt matter Low tech: want cheaper products Age High tech: new Low: 2-4 years mtbf (mean time before failure) high tech prefers high mtbf Low tech is ok with lower Positioning size and performance of product. The perceptual map size on vertical axis Performance on x axis Low tech circle on top ideal spots on perceptual map Low tech: middle of circle High tech: bottom right corner of circle Outside Dashed circles no one is going to buy the product Year by year buying criteria positioning changes every year, the others always remain the same. Rough cut circles radius 4 units Accounts recieveable sets the amount of time customers have to pay for their purchases Awareness who knows about it accessibility how easy can you get the product R&D oversees invention and redesign. changing size or performance Low tech movement rate vs high tech low .7 high 1.0 Marketing department price, place and promotion, in charge of sales forecasting. Production department literally puts everything together. the department coordinates and plans manufacturing runs, making sure the product gets out the door. capacity the number of units that can be produced on an assembly line in a year with a daily eight hour shift. Double it if you have a second shift Automation the amount of machines doing work in the facility, takes a full year Finance Department duties can include managing financial risk, determining borrowing levels or even simple check writing. finance decisions should be made after all other departments made decisions Loans you can loan up to 75% of you accounts receivable and 50% of your inventory Bonds all bonds are 10 year bonds up to 80% of your plant and equipment Dividend amount of money paid per share to stockholders each year Equity common stock and retained values listed on the balance sheet. Emergency loan Big Al 7.5% penalty Credit policy customers 30 days to pay suppliers 60 days Asssets =liability + equity current assets are less than a year fixed assets "stuck" Cash flow statement movement of cash flow through the organization, including operating, investing and financing activities TQM/sustainablility reduce material, labor and administrative costs, shorten the length of time required for r&d project to complete and increase demand for the product line. demand analysis how many units the market will want capacity analysis how many units you and your competitors can produce