COMP XM SAMPLE QUIZ

COMP XM SAMPLE QUIZ If your team decides to introduce a new sensor product, when should capacity and automation be purchased? - CORRECT ANSWERS-One round prior to product release What is a market segment? - CORRECT ANSWERS-A group of customers with similar purchasing concerns Age and ___________ are the only two positioning criteria that remain constant from year to year - CORRECT ANSWERS-reliability Which one of the following is NOT one of the four product characteristics that R&D can set? - CORRECT ANSWERS-quality The promotion budget affects: - CORRECT ANSWERS-Awareness If you are marketing to High End customers, which criteria are most important to them in order of importance? - CORRECT ANSWERS-Positioning, Age, MTBF, Price Which financial obligation is best satisfied with Current Debt? - CORRECT ANSWERS- ? Which financial obligation is best satisfied with Bond Issues? - CORRECT ANSWERSPaying for increased production capacity The exact outcome of TQM efforts appear on the TQM Report, and as bar charts on the TQM spreadsheet. These results are for - CORRECT ANSWERS-cumulative for the previous and all remaining rounds (assuming no additional investment is made) Increasing Training Hours in the HR Module tends to - CORRECT ANSWERS-increase productivity What is the minimum amount of time that it takes to invent a new sensor? - CORRECT ANSWERS-1 year at least The Finance Department can use which of the following methods to acquire capital for company activities? - CORRECT ANSWERS-Current Debt, Stock Issues, Bond Issues and Profits How can production lines double their capacity? - CORRECT ANSWERS-Add a second shift How much do segment prices fall each year? - CORRECT ANSWERS-$0.50 On the Income Statement, which of the following would be classified as a variable cost? - CORRECT ANSWERS-Direct Labor Expense The length of R&D projects is driven by all of the following except: - CORRECT ANSWERS-HR Training Investments Segments move gradually throughout the year, not just one big jump. - CORRECT ANSWERS-True You can move an existing product into a new segment. - CORRECT ANSWERS-True The difference between potential market share and actual market share is only due to your stockouts and not the stockouts of other companies. - CORRECT ANSWERSFalse Proper production planning calls for setting production equal to the default Sales Forecast generated in the Marketing module less existing inventory. - CORRECT ANSWERS-False Awareness is generated by promotion expenditures and does not decay once you raise it to a new level. - CORRECT ANSWERS-False To sell capacity, enter a negative number in the appropriate area of the Production decision sheet, but only reduce it to 1 if you might want to restart that assembly line again. - CORRECT ANSWERS-True When long term bonds become due, they are converted to current debt and paid automatically at the end of the year. - CORRECT ANSWERS-True The Market Capitalization of your company is the current stock prices multiplied by the number of shares outstanding. - CORRECT ANSWERS-True The two primary factors that affect your stock price are your market share and dividends. - CORRECT ANSWERS-False Contribution Margin is a measure of the % gross profit you make per unit sold (price less direct materials, direct labor and inventory expense). - CORRECT ANSWERS-True The customer survey score is due to product characteristics (price, positioning, etc.) and marketing characteristics (accessibility, awareness, etc.) - CORRECT ANSWERS-True The Balanced Scorecard includes scores in Financial, Customer, Internal Business and Learning and Growth categories. - CORRECT ANSWERS-True TQM investments have an immediate effect and do not need to be maintained past the initial year to keep the same improvement. - CORRECT ANSWERS-True The Capstone Courier shows contribution margin by product for both your products and the products of your competitors. - CORRECT ANSWERS-True In order to enter a decision, you must Save a Draft to your local computer. - CORRECT ANSWERS-False The better the bond rating of your firm, the lower the interest rate that you will pay on debt. B is a better rating than BB. - CORRECT ANSWERS-False Return on Equity is a ratio of net profit each year divided by owner's equity. - CORRECT ANSWERS-True The cash flow statement is NOT included as part of the Capstone Courier - CORRECT ANSWERS-False An investment intended to lower labor costs in Capstone Production is called automation. - CORRECT ANSWERS-True The ideal point in each segment is at the center of the fine-cut circle and represents that most popular combination of size and performance. - CORRECT ANSWERS-False The cost leadership strategy is difficult when there are many rivals with mature technologies. - CORRECT ANSWERS-True Sales, generated in a particular year, divided by the value of total assets for the same period. - CORRECT ANSWERS-Asset Turnover Equity divided by Shares Outstanding. - CORRECT ANSWERS-Book Value Per Share A cash injection during the year, automatically triggered when the company runs out of cash. - CORRECT ANSWERS-Emergency Loan money left after investment that a company can either put in the bank or give to shareholders in the form of a dividend. - CORRECT ANSWERS-Free cash flow Ratio that shows the relative amount of Debt - CORRECT ANSWERS-leverage Stock Price divided by Earnings Per Share (EPS) - CORRECT ANSWERS-price earnings ratio all R&D, Marketing, and TQM costs. - CORRECT ANSWERS-S,G&A expenses Current Assets - Current Liabilities - CORRECT ANSWERS-working capital Zero Inventory condition - CORRECT