BOARD QUERY 1 FOR FINAL COMP XM
CERTIFICATION SCRIPT 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◍ Finding the profit margin.
Answer: Look at "ROS" under the Selected Financial Statistics
◍ Sales, generated in a particular year, divided by the value of total assets for
the same period..
Answer: Asset Turnover
◍ how to analyze plant utilization.
Answer: If you are fully utilizing one full shift your plant utilization will be
100%. If you are running two full shifts, your utilization will be 198%. Your
plant utilization should be in the range of 160% to 180% of capacity.If your
plant utilization is lower than 125%, you should consider selling capacity.
◍ Which financial obligation is best satisfied with Current Debt?.
Answer: ?
◍ A cash injection during the year, automatically triggered when the company
runs out of cash..
Answer: Emergency Loan
◍ An investment intended to lower labor costs in Capstone Production is
called automation..
Answer: True
◍ High inventory balances can lead to.
Answer: low asset turnover.
◍ On the Income Statement, which of the following would be classified as a
variable cost?.
, Answer: Direct Labor Expense
◍ The exact outcome of TQM efforts appear on the TQM Report, and as bar
charts on the TQM spreadsheet. These results are for.
Answer: cumulative for the previous and all remaining rounds (assuming no
additional investment is made)
◍ you must calculate capacity _____ rounds ahead.
Answer: 2 rounds
◍ The promotion budget affects:.
Answer: Awareness
◍ What is a market segment?.
Answer: A group of customers with similar purchasing concerns
◍ positive working capital means that.
Answer: the company is able to pay off its short-term liabilities with its short
term assets.
◍ What is the minimum amount of time that it takes to invent a new sensor?.
Answer: 1 year at least
◍ If X company would not have stocked out, how much would their earnings
before interest and taxes (EBIT) have increased?.
Answer: multiply the unit sales missed (question 14) times Baker's price on
the "Production Analysis" on page 4 to see how much more revenue Baker
could have earned. Then multiply the missed revenue by Baker's
contribution margin ("Production Analysis on page 4") to arrive at the
missed EBIT.
◍ How did you finance their plant improvements? (3).
Answer: profitinventorybonds
◍ To calculate leverage,.
Answer: divide total assets by total equity. This number will represent the
number of dollars of assets owned per dollar invested by equity holders.If a
company has leverage of four, that means they have $4 in debt for every $1
, in equity.
◍ (acumen builder 7)Andrews is considering changing their receivables policy
from net 30 days to net 42 days to stimulate sales. Based on a 365 day year,
how much more cash will this policy change tie up in receivables?.
Answer: A/R from b/s 42/30 then see the increase (difference) from current
A/R* Calculate the percent of the year the new receivable policy represents
Multiply the percentage by Andrews's sales in the "Income Statement
Survey" on page 3. This will be the average receivables balance for 42 days.
Subtract Andrews's current receivable balance in the "Balance Sheet
Survey" on page 3 from the average receivables balance for 42 days. This is
Andrews increased investment in receivables or the amount of cash the new
receivables policy change will tie up.
◍ If you are marketing to High End customers, which criteria are most
important to them in order of importance?.
Answer: Positioning, Age, MTBF, Price
◍ sales and promo budgets (all four rounds).
Answer: For all productsRound 1: 2,000Round 2: 1,500Round 3:
1,400Round 4: 1,400
◍ The customer survey score is due to product characteristics (price,
positioning, etc.) and marketing characteristics (accessibility, awareness,
etc.).
Answer: True
◍ A good benchmark for the contribution margin is.
Answer: 20%+- in round 1 and 30%+ in rounds 2 - 8.
◍ If a product will be available on July 1,.
Answer: multiply the product capacity by .50 (for the half of a year the
product will be available), then multiply that product by 2 since both shifts
will be utilized. If a product were to be available on April 1, multiply the
product capacity by .75 (for the ¾ of a year the product will be available),
then multiply that product by 2 since both shifts will be utilized.
CERTIFICATION SCRIPT 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◍ Finding the profit margin.
Answer: Look at "ROS" under the Selected Financial Statistics
◍ Sales, generated in a particular year, divided by the value of total assets for
the same period..
Answer: Asset Turnover
◍ how to analyze plant utilization.
Answer: If you are fully utilizing one full shift your plant utilization will be
100%. If you are running two full shifts, your utilization will be 198%. Your
plant utilization should be in the range of 160% to 180% of capacity.If your
plant utilization is lower than 125%, you should consider selling capacity.
◍ Which financial obligation is best satisfied with Current Debt?.
Answer: ?
◍ A cash injection during the year, automatically triggered when the company
runs out of cash..
Answer: Emergency Loan
◍ An investment intended to lower labor costs in Capstone Production is
called automation..
Answer: True
◍ High inventory balances can lead to.
Answer: low asset turnover.
◍ On the Income Statement, which of the following would be classified as a
variable cost?.
, Answer: Direct Labor Expense
◍ The exact outcome of TQM efforts appear on the TQM Report, and as bar
charts on the TQM spreadsheet. These results are for.
Answer: cumulative for the previous and all remaining rounds (assuming no
additional investment is made)
◍ you must calculate capacity _____ rounds ahead.
Answer: 2 rounds
◍ The promotion budget affects:.
Answer: Awareness
◍ What is a market segment?.
Answer: A group of customers with similar purchasing concerns
◍ positive working capital means that.
Answer: the company is able to pay off its short-term liabilities with its short
term assets.
◍ What is the minimum amount of time that it takes to invent a new sensor?.
Answer: 1 year at least
◍ If X company would not have stocked out, how much would their earnings
before interest and taxes (EBIT) have increased?.
Answer: multiply the unit sales missed (question 14) times Baker's price on
the "Production Analysis" on page 4 to see how much more revenue Baker
could have earned. Then multiply the missed revenue by Baker's
contribution margin ("Production Analysis on page 4") to arrive at the
missed EBIT.
◍ How did you finance their plant improvements? (3).
Answer: profitinventorybonds
◍ To calculate leverage,.
Answer: divide total assets by total equity. This number will represent the
number of dollars of assets owned per dollar invested by equity holders.If a
company has leverage of four, that means they have $4 in debt for every $1
, in equity.
◍ (acumen builder 7)Andrews is considering changing their receivables policy
from net 30 days to net 42 days to stimulate sales. Based on a 365 day year,
how much more cash will this policy change tie up in receivables?.
Answer: A/R from b/s 42/30 then see the increase (difference) from current
A/R* Calculate the percent of the year the new receivable policy represents
Multiply the percentage by Andrews's sales in the "Income Statement
Survey" on page 3. This will be the average receivables balance for 42 days.
Subtract Andrews's current receivable balance in the "Balance Sheet
Survey" on page 3 from the average receivables balance for 42 days. This is
Andrews increased investment in receivables or the amount of cash the new
receivables policy change will tie up.
◍ If you are marketing to High End customers, which criteria are most
important to them in order of importance?.
Answer: Positioning, Age, MTBF, Price
◍ sales and promo budgets (all four rounds).
Answer: For all productsRound 1: 2,000Round 2: 1,500Round 3:
1,400Round 4: 1,400
◍ The customer survey score is due to product characteristics (price,
positioning, etc.) and marketing characteristics (accessibility, awareness,
etc.).
Answer: True
◍ A good benchmark for the contribution margin is.
Answer: 20%+- in round 1 and 30%+ in rounds 2 - 8.
◍ If a product will be available on July 1,.
Answer: multiply the product capacity by .50 (for the half of a year the
product will be available), then multiply that product by 2 since both shifts
will be utilized. If a product were to be available on April 1, multiply the
product capacity by .75 (for the ¾ of a year the product will be available),
then multiply that product by 2 since both shifts will be utilized.
