REPORTING STUDY GUIDE 2026
◉ The difference between potential market share and actual market
share is only due to your stockouts and not the stockouts of other
companies.
Answer: False
◉ Proper production planning calls for setting production equal to
the default Sales Forecast generated in the Marketing module less
existing inventory.
Answer: False
◉ Awareness is generated by promotion expenditures and does not
decay once you raise it to a new level.
Answer: 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.
Answer: True
, ◉ When long term bonds become due, they are converted to current
debt and paid automatically at the end of the year.
Answer: True
◉ The Market Capitalization of your company is the current stock
prices multiplied by the number of shares outstanding.
Answer: True
◉ The two primary factors that affect your stock price are your
market share and dividends.
Answer: False
◉ Contribution Margin is a measure of the % gross profit you make
per unit sold (price less direct materials, direct labor and inventory
expense).
Answer: True
◉ The customer survey score is due to product characteristics
(price, positioning, etc.) and marketing characteristics (accessibility,
awareness, etc.)
Answer: True
◉ The Balanced Scorecard includes scores in Financial, Customer,
Internal Business and Learning and Growth categories.