Capsim Simulation Test UPDATED
ACTUAL Exam Questions and CORRECT
Answers
If you want to add 500,000 units of capacity to an assembly line with an automation rating of 5,
how much will it cost? (Hint: $6 for floor space and $4 times automation level. - CORRECT
ANSWER - 13,000,000
Budgeting money to Quality initiative will lead to these outcomes except: - CORRECT
ANSWER - increase Labor Costs.
Increasing a product's reliability will result in which of the following changes to production
costs? - CORRECT ANSWER - Higher material cost
Adding one additional unit of capacity costs - CORRECT ANSWER - $6 + ($4 x
Automation Level).
Which customer group or market segment seeks proven products, are indifferent to technological
sophistication, and are price motivated? - CORRECT ANSWER - Low End customers
What is the most important criteria to a "Low End Segment" customer? - CORRECT
ANSWER - Price
Which of the following is true about the Accounts Receivable Lag and its implications on
demand? - CORRECT ANSWER - At 60 days, demand is 98.5%
An increase in promotional budgets have: - CORRECT ANSWER - decreasing returns
over time.
If your short-term interest rate is 12.1%, then your bond rate is: - CORRECT ANSWER -
13.5%.
, When a segment's product demand outstrips supply, - CORRECT ANSWER - both a and c
are true.
What is the starting awareness percentage of a new product? - CORRECT ANSWER -
50%
If you purchase production capacity and automation: - CORRECT ANSWER - it is
available in the next year.
What are the three effects of an increase in Automation? - CORRECT ANSWER - a, c, d
How much does it cost for MTBF per 1,000 hours of reliability? - CORRECT ANSWER -
a, c, d
When a segment's product demand outstrips supply, - CORRECT ANSWER - both a and c
are true.
Emergency loans are made at what rate over the normal Current Debt interest rate? - CORRECT
ANSWER - 7.5%
Teams can produce up to ______ products. - CORRECT ANSWER -8
Customers go through a two-stage buying process: The Rough Cut and the Fine Cut. In the
Rough Cut, buyers focus on four product characteristics. Which one of the following is NOT one
of these four product characteristics - CORRECT ANSWER - quality
Benchmarking reduces - CORRECT ANSWER - Administrative Cost.
ACTUAL Exam Questions and CORRECT
Answers
If you want to add 500,000 units of capacity to an assembly line with an automation rating of 5,
how much will it cost? (Hint: $6 for floor space and $4 times automation level. - CORRECT
ANSWER - 13,000,000
Budgeting money to Quality initiative will lead to these outcomes except: - CORRECT
ANSWER - increase Labor Costs.
Increasing a product's reliability will result in which of the following changes to production
costs? - CORRECT ANSWER - Higher material cost
Adding one additional unit of capacity costs - CORRECT ANSWER - $6 + ($4 x
Automation Level).
Which customer group or market segment seeks proven products, are indifferent to technological
sophistication, and are price motivated? - CORRECT ANSWER - Low End customers
What is the most important criteria to a "Low End Segment" customer? - CORRECT
ANSWER - Price
Which of the following is true about the Accounts Receivable Lag and its implications on
demand? - CORRECT ANSWER - At 60 days, demand is 98.5%
An increase in promotional budgets have: - CORRECT ANSWER - decreasing returns
over time.
If your short-term interest rate is 12.1%, then your bond rate is: - CORRECT ANSWER -
13.5%.
, When a segment's product demand outstrips supply, - CORRECT ANSWER - both a and c
are true.
What is the starting awareness percentage of a new product? - CORRECT ANSWER -
50%
If you purchase production capacity and automation: - CORRECT ANSWER - it is
available in the next year.
What are the three effects of an increase in Automation? - CORRECT ANSWER - a, c, d
How much does it cost for MTBF per 1,000 hours of reliability? - CORRECT ANSWER -
a, c, d
When a segment's product demand outstrips supply, - CORRECT ANSWER - both a and c
are true.
Emergency loans are made at what rate over the normal Current Debt interest rate? - CORRECT
ANSWER - 7.5%
Teams can produce up to ______ products. - CORRECT ANSWER -8
Customers go through a two-stage buying process: The Rough Cut and the Fine Cut. In the
Rough Cut, buyers focus on four product characteristics. Which one of the following is NOT one
of these four product characteristics - CORRECT ANSWER - quality
Benchmarking reduces - CORRECT ANSWER - Administrative Cost.
