CAPSIM MAIN EXAMINATION TEST 2025/2026 QUESTIONS
AND SOLUTION RATED A+
✔✔20. The segments all drift to the lower-right section of the perceptual map. Why does
this drift take place? - ✔✔c. Customers want smaller and faster products.
✔✔22. When tracking market segments on the performance and size perceptual map,
which segment moves or "drifts" the slowest? - ✔✔b. Traditional
✔✔23. What happens to a product priced at $1 above or below the segment guideline
when a segment's product supply outstrips demand? - ✔✔c. It loses 20% of its appeal.
✔✔25. At what dollar amount above the segment guidelines is all consumer appeal
lost? - ✔✔b. $5
✔✔26. The prices in each segment - ✔✔a. drop by $0.50 each year.
✔✔27. MTBF in the segments should be - ✔✔MTBF (Performance) > MTBF (High
End)., and MTBF (Low End) < MTBF (Size).
✔✔29. Inside each fine cut circle, - ✔✔a. segments have an ideal spot where demand
is at its highest.
✔✔30. The Traditional ideal spot is - ✔✔c. near the center of its circle.
✔✔31. Increasing a product's reliability will result in which of the following changes to
production costs? - ✔✔b. Higher material cost
✔✔33. What happens to a product's Perceived Age when it is repositioned in R&D? -
✔✔a. It is reduced by 50%.
✔✔34. The preferred product perceived age for each sector peaks at: - ✔✔c. zero years
for high end and seven years for low end.
✔✔37. What are the top buying criteria that low end customers most value? - ✔✔b.
Price
✔✔42. Which market segment places the most importance on price? - ✔✔c. Low End
✔✔44. If you are marketing to High End customers, which criteria are most important to
them in order of importance? - ✔✔e. Positioning, Age, MTBF, Price
,✔✔49. When an R&D effort started in 2001 completes on September 15, 2002, the
product revision kicks in - ✔✔b. immediately upon completion.
✔✔50. The relative cost of a product's material cost increases as: - ✔✔c. MTBF is
raised.
✔✔51. R&D completion time can be shortened - ✔✔d. when a company takes
advantage of existing technology.
✔✔52. R&D completion time depends on - ✔✔a. number of projects in R&D.
b. automation rating.
c. the age of the product.
✔✔53. Which Automation rating requires the longest time to reposition a product? -
✔✔e. 10
✔✔56. Changing MTBF will: - ✔✔a. have no impact on Perceived Age.
✔✔58. If your team decides to introduce a new product, when should capacity and
automation be purchased? - ✔✔b. One round prior to product release
✔✔64. Assuming no additional product promotion, what percent of customers, reached
through last year's marketing campaign will carry over into the current year? - ✔✔c.
67%
✔✔65. How is the strength of the sales channel measured? - ✔✔b. Accessibility on a
scale of 0 to 100%
✔✔66. If you drop your sales budget to zero, accessibility drops to 0% in how many
years? - ✔✔3
✔✔71. What is one drawback of increasing automation? - ✔✔a. The product requires
increased time/expense for subsequent short-move repositioning.
✔✔72. If you reduce automation in the production component of Marketing, you will: -
✔✔b. incur a retooling cost.
✔✔75. Depreciation is calculated: - ✔✔e. over a straight line 15-year period.
✔✔76. Which three factors drive labor cost? - ✔✔b. Wage and benefit rates
c. Automation levels
d. Second shift/Overtime costs
, ✔✔79. For Wages, the negotiation Starting Position cannot be less than ____% or more
than ____% of the current contract. - ✔✔d. 80; 150
✔✔80. Labor Negotiation includes: - ✔✔a. hourly wage.
b. benefits.
c. profit sharing.
d. annual raise.
✔✔81. To run perfectly, all HR department managers should know that - ✔✔c. all strike
settlements should be halfway between the demand and the negotiation ceiling.
✔✔82. Your workers go on strike because they have demanded $20/hour and your
wage negotiation ceiling is at $18/hour. Assuming that there are no other labor
demands, how long will the strike last? - ✔✔a. 2 weeks
✔✔83. In the Human Resources section, workers will strike one week for: - ✔✔a. every
1% your Annual Raise Negotiation Ceiling is beneath Labor's demand.
b. every $300 your Benefits Negotiation Ceiling is beneath Labor's demand.
c. every 1% your Profit Sharing Negotiation Ceiling is beneath Labor's demand.
d. every $1 your Wage Negotiation Ceiling is beneath Labor's demand.
✔✔84. The Finance Department can use which of the following methods to acquire
capital for company activities? - ✔✔a. Current Debt, Stock Issues, Bond Issues, and
Profits
✔✔85. Your finance department is primarily concerned with - ✔✔a. acquiring the capital
needed for company activities.
b. establishing a dividend policy that maximizes the return to shareholders.
c. setting credit policies for customers and suppliers.
d. profits.
✔✔87. Which financial obligation is best satisfied with Bond Issues? - ✔✔b. Increased
production capacity
✔✔88. What happens to a company when its debt-to-assets ratio increases? - ✔✔c. Its
short term interest rates increase.
d. Its bond rating is reduced.
✔✔89. What is your bond rate? The prime rate is 10%; your current bond rating slipped
one category (from AAA to AA). - ✔✔b. 10.5%
✔✔90. An AAA rating bond with a given prime rate at r, the bond rating slips to B if the
current debt interest rate is charged at - ✔✔a. R+2.5%
AND SOLUTION RATED A+
✔✔20. The segments all drift to the lower-right section of the perceptual map. Why does
this drift take place? - ✔✔c. Customers want smaller and faster products.
✔✔22. When tracking market segments on the performance and size perceptual map,
which segment moves or "drifts" the slowest? - ✔✔b. Traditional
✔✔23. What happens to a product priced at $1 above or below the segment guideline
when a segment's product supply outstrips demand? - ✔✔c. It loses 20% of its appeal.
✔✔25. At what dollar amount above the segment guidelines is all consumer appeal
lost? - ✔✔b. $5
✔✔26. The prices in each segment - ✔✔a. drop by $0.50 each year.
✔✔27. MTBF in the segments should be - ✔✔MTBF (Performance) > MTBF (High
End)., and MTBF (Low End) < MTBF (Size).
✔✔29. Inside each fine cut circle, - ✔✔a. segments have an ideal spot where demand
is at its highest.
✔✔30. The Traditional ideal spot is - ✔✔c. near the center of its circle.
✔✔31. Increasing a product's reliability will result in which of the following changes to
production costs? - ✔✔b. Higher material cost
✔✔33. What happens to a product's Perceived Age when it is repositioned in R&D? -
✔✔a. It is reduced by 50%.
✔✔34. The preferred product perceived age for each sector peaks at: - ✔✔c. zero years
for high end and seven years for low end.
✔✔37. What are the top buying criteria that low end customers most value? - ✔✔b.
Price
✔✔42. Which market segment places the most importance on price? - ✔✔c. Low End
✔✔44. If you are marketing to High End customers, which criteria are most important to
them in order of importance? - ✔✔e. Positioning, Age, MTBF, Price
,✔✔49. When an R&D effort started in 2001 completes on September 15, 2002, the
product revision kicks in - ✔✔b. immediately upon completion.
✔✔50. The relative cost of a product's material cost increases as: - ✔✔c. MTBF is
raised.
✔✔51. R&D completion time can be shortened - ✔✔d. when a company takes
advantage of existing technology.
✔✔52. R&D completion time depends on - ✔✔a. number of projects in R&D.
b. automation rating.
c. the age of the product.
✔✔53. Which Automation rating requires the longest time to reposition a product? -
✔✔e. 10
✔✔56. Changing MTBF will: - ✔✔a. have no impact on Perceived Age.
✔✔58. If your team decides to introduce a new product, when should capacity and
automation be purchased? - ✔✔b. One round prior to product release
✔✔64. Assuming no additional product promotion, what percent of customers, reached
through last year's marketing campaign will carry over into the current year? - ✔✔c.
67%
✔✔65. How is the strength of the sales channel measured? - ✔✔b. Accessibility on a
scale of 0 to 100%
✔✔66. If you drop your sales budget to zero, accessibility drops to 0% in how many
years? - ✔✔3
✔✔71. What is one drawback of increasing automation? - ✔✔a. The product requires
increased time/expense for subsequent short-move repositioning.
✔✔72. If you reduce automation in the production component of Marketing, you will: -
✔✔b. incur a retooling cost.
✔✔75. Depreciation is calculated: - ✔✔e. over a straight line 15-year period.
✔✔76. Which three factors drive labor cost? - ✔✔b. Wage and benefit rates
c. Automation levels
d. Second shift/Overtime costs
, ✔✔79. For Wages, the negotiation Starting Position cannot be less than ____% or more
than ____% of the current contract. - ✔✔d. 80; 150
✔✔80. Labor Negotiation includes: - ✔✔a. hourly wage.
b. benefits.
c. profit sharing.
d. annual raise.
✔✔81. To run perfectly, all HR department managers should know that - ✔✔c. all strike
settlements should be halfway between the demand and the negotiation ceiling.
✔✔82. Your workers go on strike because they have demanded $20/hour and your
wage negotiation ceiling is at $18/hour. Assuming that there are no other labor
demands, how long will the strike last? - ✔✔a. 2 weeks
✔✔83. In the Human Resources section, workers will strike one week for: - ✔✔a. every
1% your Annual Raise Negotiation Ceiling is beneath Labor's demand.
b. every $300 your Benefits Negotiation Ceiling is beneath Labor's demand.
c. every 1% your Profit Sharing Negotiation Ceiling is beneath Labor's demand.
d. every $1 your Wage Negotiation Ceiling is beneath Labor's demand.
✔✔84. The Finance Department can use which of the following methods to acquire
capital for company activities? - ✔✔a. Current Debt, Stock Issues, Bond Issues, and
Profits
✔✔85. Your finance department is primarily concerned with - ✔✔a. acquiring the capital
needed for company activities.
b. establishing a dividend policy that maximizes the return to shareholders.
c. setting credit policies for customers and suppliers.
d. profits.
✔✔87. Which financial obligation is best satisfied with Bond Issues? - ✔✔b. Increased
production capacity
✔✔88. What happens to a company when its debt-to-assets ratio increases? - ✔✔c. Its
short term interest rates increase.
d. Its bond rating is reduced.
✔✔89. What is your bond rate? The prime rate is 10%; your current bond rating slipped
one category (from AAA to AA). - ✔✔b. 10.5%
✔✔90. An AAA rating bond with a given prime rate at r, the bond rating slips to B if the
current debt interest rate is charged at - ✔✔a. R+2.5%
