CAPSIM Exam 1 UPDATED Exam
Questions and CORRECT Answers
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
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
Costs _______ as product moves closer towards the high tech segments desired positioning and
the upper limit of the reliability scale - Rise
Revision date represents the day when your product is _______ or ________ - Updated or
released
The marketing department is responsible for........ - Pricing products, forecasting sales, promoting
the brand and selling products
The marketing department makes decisions on...... - Setting product prices, setting product
promotion and sales investments, forecasting sales for each product
Questions and CORRECT Answers
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
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
Costs _______ as product moves closer towards the high tech segments desired positioning and
the upper limit of the reliability scale - Rise
Revision date represents the day when your product is _______ or ________ - Updated or
released
The marketing department is responsible for........ - Pricing products, forecasting sales, promoting
the brand and selling products
The marketing department makes decisions on...... - Setting product prices, setting product
promotion and sales investments, forecasting sales for each product
