CAPSIM EXAM 1 Questions and
Answers 100% Pass
What is the goal of the simulation? - ✔✔Manage a healthy and profitable company
How many KPIs do you have? - ✔✔You are scored on five KPIs passed down from
your board of directors
What are the KPIs? - ✔✔Sales(Revenue) - the total number, in dollars, that you sell in a
single year
Profit - the total number, in dollars, that you make after all revenue and costs are
accounted for
Stock Price - the value per share that your company is traded at one public stock
exchange
Contribution Margin - the percentage your company earns on the sale of each unit. This
is calculated by taking sales minus variable costs and dividing by overall sales
Emergency Loan - a loan provided when a company runs out of money during the year
at an inflated inters rate. Emergency loans will only come as a result of your own
decisions, so these can be avoided!
How are the KPIs measured? - ✔✔Measured via star summary. Each year, your
company will be awarded a star if you have improved over the prior year
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, What four primary areas are you making company decisions in? - ✔✔Research and
development, marketing, production, and finance
What does research and development do? - ✔✔Create new products, upgrading
products, retiring products from the market
To identify what the markets wants to see in the products for sale, look to the.... -
✔✔Buying criteria in the R&D interface or the R&D section of the report
What product specifications are built in the gold decision sliders, and include: -
✔✔Performance
Size
Reliability
The performance scale is _________ and it becomes more appealing to customers as
performance _____________. - ✔✔0-20 and Increases
Size is on the scale _________ and as the size ________, the sensor becomes more
appealing to customers. - ✔✔20-0 and decreases
Reliability is on a scale of _____________ and each 1000 hours of reliability adds ______
to the unit material cost - ✔✔14000-23000 and $.30
When you retire a product the remaining inventory will be sold off at - ✔✔50% of the
products material cost
Each performance or size revision to your product will cut the perceived age of the
product in ______ - ✔✔Half
Your material cost per unit is based on the ________ and _______ of your product. -
✔✔Positioning and reliability
100% Pass Guarantee Emily Charlene All Rights Reserved © 2025 2
Answers 100% Pass
What is the goal of the simulation? - ✔✔Manage a healthy and profitable company
How many KPIs do you have? - ✔✔You are scored on five KPIs passed down from
your board of directors
What are the KPIs? - ✔✔Sales(Revenue) - the total number, in dollars, that you sell in a
single year
Profit - the total number, in dollars, that you make after all revenue and costs are
accounted for
Stock Price - the value per share that your company is traded at one public stock
exchange
Contribution Margin - the percentage your company earns on the sale of each unit. This
is calculated by taking sales minus variable costs and dividing by overall sales
Emergency Loan - a loan provided when a company runs out of money during the year
at an inflated inters rate. Emergency loans will only come as a result of your own
decisions, so these can be avoided!
How are the KPIs measured? - ✔✔Measured via star summary. Each year, your
company will be awarded a star if you have improved over the prior year
100% Pass Guarantee Emily Charlene All Rights Reserved © 2025 1
, What four primary areas are you making company decisions in? - ✔✔Research and
development, marketing, production, and finance
What does research and development do? - ✔✔Create new products, upgrading
products, retiring products from the market
To identify what the markets wants to see in the products for sale, look to the.... -
✔✔Buying criteria in the R&D interface or the R&D section of the report
What product specifications are built in the gold decision sliders, and include: -
✔✔Performance
Size
Reliability
The performance scale is _________ and it becomes more appealing to customers as
performance _____________. - ✔✔0-20 and Increases
Size is on the scale _________ and as the size ________, the sensor becomes more
appealing to customers. - ✔✔20-0 and decreases
Reliability is on a scale of _____________ and each 1000 hours of reliability adds ______
to the unit material cost - ✔✔14000-23000 and $.30
When you retire a product the remaining inventory will be sold off at - ✔✔50% of the
products material cost
Each performance or size revision to your product will cut the perceived age of the
product in ______ - ✔✔Half
Your material cost per unit is based on the ________ and _______ of your product. -
✔✔Positioning and reliability
100% Pass Guarantee Emily Charlene All Rights Reserved © 2025 2
