Comp-XM Advanced Practice: 50 Fresh Questions Covering
R&D, TQM, Ratios & Team Dynamics
Marketing & R&D
Q1. Which customer segments are most receptive to new products in their first
year of release?
A) Low End & Traditional
B) Traditional & Size
C) High End & Performance
D) Performance & Low End
Answer: C (High End & Performance)
Rationale: High End and Performance customers actively seek cutting-edge technology
and are willing to pay premium prices for the latest product designs. Low End customers
prefer established, cheap products. Traditional customers are conservative and not early
adopters.
Q2. What happens to segment price ranges over time in the simulation?
A) Prices remain stable
B) Prices increase
by 0.50peryearC)Pricesdecreaseby0.50peryearC)Pricesdecreaseby0.50 per year
D) Prices fluctuate randomly
**Answer: C (Prices decrease
by 0.50peryear)∗∗∗Rationale:∗Eachyear,customerexpectationsforlowerpricesshif
tdownwardby0.50peryear)∗∗∗Rationale:∗Eachyear,customerexpectationsforl
owerpricesshiftdownwardby0.50 across all segments. This is a fixed rule in the
Capstone simulation to reflect market pressure.
,Q3. Which of the following correctly describes the ideal positioning strategy for
the Low End segment?
A) Keep Perf/Size coordinates exactly at the segment center each year
B) Keep Perf/Size coordinates at the trailing edge of the segment circle
C) Keep Perf/Size coordinates at the leading edge of the segment circle
D) Reposition every year to match the ideal spot
Answer: B (Keep at the trailing edge)
Rationale: Low End customers care least about positioning. By keeping the product at
the trailing edge (older technology), you minimize R&D costs and extend product life
without repositioning every year.
Q4. What is the recommended R&D completion date for a new product launch?
A) January 1st
B) December 31st
C) June 26th–28th
D) March 15th
Answer: C (June 26th–28th)
Rationale: A mid-year release allows the product to be on the market for about half the
year, capturing demand while avoiding the early-year rush. It also gives you time to
adjust production and marketing.
Q5. Which two positioning criteria remain constant year to year?
A) Price and Performance
B) Age and Reliability
C) Size and MTBF
D) Performance and Size
Answer: B (Age and Reliability)
Rationale: Age (product revision date) and reliability (MTBF) are not repositioned like
Perf/Size coordinates. They change only when you modify the product in R&D.
, Production & Capacity
Q6. What does increasing automation do to a production line?
A) Increases labor cost per unit
B) Increases variable costs
C) Reduces labor cost per unit but increases fixed costs
D) Reduces both labor and material costs
Answer: C (Reduces labor cost per unit but increases fixed costs)
Rationale: Higher automation replaces workers with machines: labor costs drop, but
depreciation (fixed cost) rises because machinery is expensive.
Q7. If your 2nd shift utilization is consistently below 20%, what should you do?
A) Buy more capacity
B) Sell excess capacity
C) Increase automation
D) Hire more workers
Answer: B (Sell excess capacity)
Rationale: Below 20% means you have too much idle capacity. Selling it reduces
depreciation expenses and improves asset efficiency.
Q8. Which of the following are examples of variable costs in the simulation?
(Select 3)
A) Direct Labor
B) Depreciation
C) Material Cost
D) R&D Cost
E) Inventory Carrying Cost
R&D, TQM, Ratios & Team Dynamics
Marketing & R&D
Q1. Which customer segments are most receptive to new products in their first
year of release?
A) Low End & Traditional
B) Traditional & Size
C) High End & Performance
D) Performance & Low End
Answer: C (High End & Performance)
Rationale: High End and Performance customers actively seek cutting-edge technology
and are willing to pay premium prices for the latest product designs. Low End customers
prefer established, cheap products. Traditional customers are conservative and not early
adopters.
Q2. What happens to segment price ranges over time in the simulation?
A) Prices remain stable
B) Prices increase
by 0.50peryearC)Pricesdecreaseby0.50peryearC)Pricesdecreaseby0.50 per year
D) Prices fluctuate randomly
**Answer: C (Prices decrease
by 0.50peryear)∗∗∗Rationale:∗Eachyear,customerexpectationsforlowerpricesshif
tdownwardby0.50peryear)∗∗∗Rationale:∗Eachyear,customerexpectationsforl
owerpricesshiftdownwardby0.50 across all segments. This is a fixed rule in the
Capstone simulation to reflect market pressure.
,Q3. Which of the following correctly describes the ideal positioning strategy for
the Low End segment?
A) Keep Perf/Size coordinates exactly at the segment center each year
B) Keep Perf/Size coordinates at the trailing edge of the segment circle
C) Keep Perf/Size coordinates at the leading edge of the segment circle
D) Reposition every year to match the ideal spot
Answer: B (Keep at the trailing edge)
Rationale: Low End customers care least about positioning. By keeping the product at
the trailing edge (older technology), you minimize R&D costs and extend product life
without repositioning every year.
Q4. What is the recommended R&D completion date for a new product launch?
A) January 1st
B) December 31st
C) June 26th–28th
D) March 15th
Answer: C (June 26th–28th)
Rationale: A mid-year release allows the product to be on the market for about half the
year, capturing demand while avoiding the early-year rush. It also gives you time to
adjust production and marketing.
Q5. Which two positioning criteria remain constant year to year?
A) Price and Performance
B) Age and Reliability
C) Size and MTBF
D) Performance and Size
Answer: B (Age and Reliability)
Rationale: Age (product revision date) and reliability (MTBF) are not repositioned like
Perf/Size coordinates. They change only when you modify the product in R&D.
, Production & Capacity
Q6. What does increasing automation do to a production line?
A) Increases labor cost per unit
B) Increases variable costs
C) Reduces labor cost per unit but increases fixed costs
D) Reduces both labor and material costs
Answer: C (Reduces labor cost per unit but increases fixed costs)
Rationale: Higher automation replaces workers with machines: labor costs drop, but
depreciation (fixed cost) rises because machinery is expensive.
Q7. If your 2nd shift utilization is consistently below 20%, what should you do?
A) Buy more capacity
B) Sell excess capacity
C) Increase automation
D) Hire more workers
Answer: B (Sell excess capacity)
Rationale: Below 20% means you have too much idle capacity. Selling it reduces
depreciation expenses and improves asset efficiency.
Q8. Which of the following are examples of variable costs in the simulation?
(Select 3)
A) Direct Labor
B) Depreciation
C) Material Cost
D) R&D Cost
E) Inventory Carrying Cost
