Capstone exam ACTUAL QUESTIONS AND
CORRECT ANSWERS
In the Capstone® simulation, what are the components of a product's material cost? - Correct
answers✔✔Reliability component cost and positioning component cost
Which customer group or market segment seeks cutting edge technology in both size and
performance? - Correct answers✔✔Low End customers
When a segment's product demand outstrips supply,
a. a product's MTBF can go 4,900 hours below the range without affecting sales.
b. a product with an MTBF 1,000 hours below the segment guideline loses about 20% of its
appeal.
c. at 5,000 below the range, products will lose all appeal.
d. both a and b are true.
e. both a and c are true. - Correct answers✔✔e. both a and c are true.
The economic environment for this simulation game will include - Correct answers✔✔a
favorable environment featuring modest growth, low inflation, and reasonable interest rates.
Capacity is sold by - Correct answers✔✔entering a negative number in the Buy/Sell row on the
Production Spreadsheet.
, What is the size of the plant at the start of the simulation? - Correct answers✔✔5 assembly lines
with space to add 3 more.
Emergency loans are made at what rate over the normal Current Debt interest rate? - Correct
answers✔✔7.5%
Marketing is concerned with 4 things. What are they? - Correct answers✔✔Price, Place,
Promotion, and Product
Two questions that dominate customers' thinking are: - Correct answers✔✔Size and
Performance.
The Traditional ideal spot is - Correct answers✔✔near the center of its circle.
What are the drivers of Material Costs?
a. Higher performance
b. Smaller size
c. Higher Mean Time Between Failure (MTBF)
d. All of the above
e. None of the above - Correct answers✔✔d. All of the above
CORRECT ANSWERS
In the Capstone® simulation, what are the components of a product's material cost? - Correct
answers✔✔Reliability component cost and positioning component cost
Which customer group or market segment seeks cutting edge technology in both size and
performance? - Correct answers✔✔Low End customers
When a segment's product demand outstrips supply,
a. a product's MTBF can go 4,900 hours below the range without affecting sales.
b. a product with an MTBF 1,000 hours below the segment guideline loses about 20% of its
appeal.
c. at 5,000 below the range, products will lose all appeal.
d. both a and b are true.
e. both a and c are true. - Correct answers✔✔e. both a and c are true.
The economic environment for this simulation game will include - Correct answers✔✔a
favorable environment featuring modest growth, low inflation, and reasonable interest rates.
Capacity is sold by - Correct answers✔✔entering a negative number in the Buy/Sell row on the
Production Spreadsheet.
, What is the size of the plant at the start of the simulation? - Correct answers✔✔5 assembly lines
with space to add 3 more.
Emergency loans are made at what rate over the normal Current Debt interest rate? - Correct
answers✔✔7.5%
Marketing is concerned with 4 things. What are they? - Correct answers✔✔Price, Place,
Promotion, and Product
Two questions that dominate customers' thinking are: - Correct answers✔✔Size and
Performance.
The Traditional ideal spot is - Correct answers✔✔near the center of its circle.
What are the drivers of Material Costs?
a. Higher performance
b. Smaller size
c. Higher Mean Time Between Failure (MTBF)
d. All of the above
e. None of the above - Correct answers✔✔d. All of the above
