POLICY CAPSIM EXAM UPDATED QUESTIONS AND
ANSWERS
Products are invented and revised by which department? - CORRECT ANSWER✅✅✅Research and
Development
What is the industry newsletter called? - CORRECT ANSWER✅✅✅Capstone Courier
Which of these investments is NOT a function of the Production department?
- Increasing Automation
- Wage Increases
- Creating new production lines - CORRECT ANSWER✅✅✅Wage Increases
What are your company's options for raising money? - CORRECT ANSWER✅✅✅- Borrowing Long-
term debt
- Borrowing Short-term debt
- Issuing Stock
Prices are established by... which department? - CORRECT ANSWER✅✅✅Marketing Department
True or False?
The Proformas are dynamic financial statements that recalculate based on your decisions. - CORRECT
ANSWER✅✅✅True
True or False?
Production runs can be scheduled in one or two shifts. - CORRECT ANSWER✅✅✅True
,- Up to twice the production line's First Shift Capacity can be scheduled for each individual product.
Production runs that exceed the First Shift Capacity result in either Overtime and/or a Second Shift,
depending on the Worker Complement.
True or False?
Hiring the Needed Complement will always eliminate a Second Shift. - CORRECT ANSWER✅✅✅False
- Hiring the Needed Complement eliminates all Overtime. The Second Shift workers are paid the same as
workers on Overtime, however, Second Shift workers are more efficient and do not seek work
elsewhere, therefore reducing turnover.
True or False?
Management should strive to increase Turnover. - CORRECT ANSWER✅✅✅False
- Lowering Turnover reduces Recruitment costs.
True or False?
Increasing Capacity tends to reduce the number of workers on Second Shift. - CORRECT
ANSWER✅✅✅True
- Increasing Capacity tends to reduce the number of workers on the Second Shift. As an example, a
production order of 1,200 units on a line with a Capacity of 800 units (numbers in thousands) will
require 400 units to be produced by the Second Shift. Increasing Capacity to a total of 1,000 units will
result in 1,000 units manufactured by First Shift labor, and only 200 units produced by more expensive
Second Shift labor.
True or False?
, Increasing Training Hours tends to both increase and decrease the Needed Complement. - CORRECT
ANSWER✅✅✅True
- In the short term, increasing Training Hours will increase the Needed Complement-- Workers are taken
off the production line and put in the classroom. However, as time goes on, investing in Training Hours
increases worker productivity, and therefore tends to decreases the Needed Complement.
_________ are incurred when production runs increase and teams match hiring to Needed
Complement. - CORRECT ANSWER✅✅✅Recruiting costs
- Increasing production and then matching the Needed Complement will result in new hires, and
therefore increase Recruiting Costs.
Assuming the Productivity Index is greater than 100%, adding Overtime will ____________ the
Productivity Index. - CORRECT ANSWER✅✅✅Decrease
- While the Productivity Index can never fall below 100%, it is possible for teams to increase the Index by
investing in a higher quality of worker (Recruiting Spend) and in education (Training Hours). However,
scheduling Overtime will decrease the Index because workers will become tired and disgruntled.
True or False?
Worker training is entered by the dollar. - CORRECT ANSWER✅✅✅False
Hours are entered on the HR Screen. Training costs $20.00 per hour per worker.
Teams _______________ Recruiting Costs if they wish. - CORRECT ANSWER✅✅✅can eliminate all
but the $1,000 base cost per new employee.
- Teams can choose to enter 0 in the Recruiting Spend cell on the Human Resources screen, however
that number is in addition to a base Recruiting Cost of $1,000 per worker. A Recruiting Spend entry
facilitates recruiting a better quality of worker.
ANSWERS
Products are invented and revised by which department? - CORRECT ANSWER✅✅✅Research and
Development
What is the industry newsletter called? - CORRECT ANSWER✅✅✅Capstone Courier
Which of these investments is NOT a function of the Production department?
- Increasing Automation
- Wage Increases
- Creating new production lines - CORRECT ANSWER✅✅✅Wage Increases
What are your company's options for raising money? - CORRECT ANSWER✅✅✅- Borrowing Long-
term debt
- Borrowing Short-term debt
- Issuing Stock
Prices are established by... which department? - CORRECT ANSWER✅✅✅Marketing Department
True or False?
The Proformas are dynamic financial statements that recalculate based on your decisions. - CORRECT
ANSWER✅✅✅True
True or False?
Production runs can be scheduled in one or two shifts. - CORRECT ANSWER✅✅✅True
,- Up to twice the production line's First Shift Capacity can be scheduled for each individual product.
Production runs that exceed the First Shift Capacity result in either Overtime and/or a Second Shift,
depending on the Worker Complement.
True or False?
Hiring the Needed Complement will always eliminate a Second Shift. - CORRECT ANSWER✅✅✅False
- Hiring the Needed Complement eliminates all Overtime. The Second Shift workers are paid the same as
workers on Overtime, however, Second Shift workers are more efficient and do not seek work
elsewhere, therefore reducing turnover.
True or False?
Management should strive to increase Turnover. - CORRECT ANSWER✅✅✅False
- Lowering Turnover reduces Recruitment costs.
True or False?
Increasing Capacity tends to reduce the number of workers on Second Shift. - CORRECT
ANSWER✅✅✅True
- Increasing Capacity tends to reduce the number of workers on the Second Shift. As an example, a
production order of 1,200 units on a line with a Capacity of 800 units (numbers in thousands) will
require 400 units to be produced by the Second Shift. Increasing Capacity to a total of 1,000 units will
result in 1,000 units manufactured by First Shift labor, and only 200 units produced by more expensive
Second Shift labor.
True or False?
, Increasing Training Hours tends to both increase and decrease the Needed Complement. - CORRECT
ANSWER✅✅✅True
- In the short term, increasing Training Hours will increase the Needed Complement-- Workers are taken
off the production line and put in the classroom. However, as time goes on, investing in Training Hours
increases worker productivity, and therefore tends to decreases the Needed Complement.
_________ are incurred when production runs increase and teams match hiring to Needed
Complement. - CORRECT ANSWER✅✅✅Recruiting costs
- Increasing production and then matching the Needed Complement will result in new hires, and
therefore increase Recruiting Costs.
Assuming the Productivity Index is greater than 100%, adding Overtime will ____________ the
Productivity Index. - CORRECT ANSWER✅✅✅Decrease
- While the Productivity Index can never fall below 100%, it is possible for teams to increase the Index by
investing in a higher quality of worker (Recruiting Spend) and in education (Training Hours). However,
scheduling Overtime will decrease the Index because workers will become tired and disgruntled.
True or False?
Worker training is entered by the dollar. - CORRECT ANSWER✅✅✅False
Hours are entered on the HR Screen. Training costs $20.00 per hour per worker.
Teams _______________ Recruiting Costs if they wish. - CORRECT ANSWER✅✅✅can eliminate all
but the $1,000 base cost per new employee.
- Teams can choose to enter 0 in the Recruiting Spend cell on the Human Resources screen, however
that number is in addition to a base Recruiting Cost of $1,000 per worker. A Recruiting Spend entry
facilitates recruiting a better quality of worker.
