1|Page
COMP XM ACTUAL EXAM QUESTIONS WITH 100%
VERIFIED ANSWER UPDATED 2026 A+ GRADE
GUARANTEED||NEWEST EXAM!!!
A productivity index of 110% means that a company's
labor costs would have been 10% higher if it had not made
production improvements. Now refer to the Income
Statement in Digby's Annual Report. The direct labor costs
for Digby were $32,486. These labor costs could have
been $20,000 higher if investments in training that
increased productivity had not been made. What was the
productivity index for Digby that led to such savings? -
Answer-161.6%
Investing $1,500,000 in TQM's Channel Support Systems
initiative will at a minimum increase demand for your
products 1.7% in this and in all future rounds. (Refer to the
TQM Initiative worksheet in the CompXM Decisions
menu.) Looking at the Round 0 Inquirer for Andrews, last
year's sales were $163,189,230. Assuming similar sales
next year, the 1.7% increase in demand will provide
$2,774,217 of additional revenue. With the overall
contribution margin of 34.1%, after direct costs this
revenue will add $946,008 to the bottom line. For
simplicity, assume that the demand increase and margins
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will remain at last year's levels. How long will it take to
achieve payback on the initial $1,500,000 TQM
investment, rounded to the nearest month? - Answer-9
months
Bam's product manager is under pressure to increase
market share, but is uncertain about how to make the
product more competitive. The product is reasonably well-
positioned in the Thrift segment and enjoys relatively high
awareness and accessibility. Which of the following would
most likely result in a quick increase in market share? -
Answer-Lower the unit selling price to the bottom limit of
the segment price range
Looking forward to next year, if Baldwins current cash
amount is $20,132 (000) and cash flows from operations
next period are unchanged from this period and Baldwin
takes ONLY the following actions relating to cash flows
from investing and financing activities:
Issues $2,000 (000) of long-term debt
Pays $4,000 (000) in dividends
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Retires $10,000 (000) in debt
Which of the following activities will expose Baldwin to the
most risk of needing an emergency loan? - Answer-
Purchases assets at a cost of $15,000 (000)
According to information found on the production analysis
page of the Inquirer, Chester sold 1126 units of Cat in the
current year. Assuming that Cat maintains a constant
market share, all the units of Cat are sold in the Nano
market segment and the growth rate remains constant,
how many years will it be before Cat will not be able to
meet future demand unless the company adds production
capacity? Exclude any existing inventory. - Answer-1 year
Which description best fits Andrews? For clarity:
- A differentiator competes through good designs, high
awareness, and easy accessibility.
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- A cost leader competes on price by reducing costs and
passing the savings to customers.
- A broad player competes in all parts of the market.
- *A niche player competes in selected parts of the
market.* - Answer-Andrews is a niche differentiator
How do you increase your stock price? (3) - Answer-1.
Increase EPS
2. Retire stock
3. Issue a dividend
How do you find EPS? - Answer-Net Profit / # shares
outstanding
What is the prime rate? - Answer-The interest rate
commercial banks charge their most credit worthy
customers.
How do you find the number of months of inventory you
have left? (3)
COMP XM ACTUAL EXAM QUESTIONS WITH 100%
VERIFIED ANSWER UPDATED 2026 A+ GRADE
GUARANTEED||NEWEST EXAM!!!
A productivity index of 110% means that a company's
labor costs would have been 10% higher if it had not made
production improvements. Now refer to the Income
Statement in Digby's Annual Report. The direct labor costs
for Digby were $32,486. These labor costs could have
been $20,000 higher if investments in training that
increased productivity had not been made. What was the
productivity index for Digby that led to such savings? -
Answer-161.6%
Investing $1,500,000 in TQM's Channel Support Systems
initiative will at a minimum increase demand for your
products 1.7% in this and in all future rounds. (Refer to the
TQM Initiative worksheet in the CompXM Decisions
menu.) Looking at the Round 0 Inquirer for Andrews, last
year's sales were $163,189,230. Assuming similar sales
next year, the 1.7% increase in demand will provide
$2,774,217 of additional revenue. With the overall
contribution margin of 34.1%, after direct costs this
revenue will add $946,008 to the bottom line. For
simplicity, assume that the demand increase and margins
,2|Page
will remain at last year's levels. How long will it take to
achieve payback on the initial $1,500,000 TQM
investment, rounded to the nearest month? - Answer-9
months
Bam's product manager is under pressure to increase
market share, but is uncertain about how to make the
product more competitive. The product is reasonably well-
positioned in the Thrift segment and enjoys relatively high
awareness and accessibility. Which of the following would
most likely result in a quick increase in market share? -
Answer-Lower the unit selling price to the bottom limit of
the segment price range
Looking forward to next year, if Baldwins current cash
amount is $20,132 (000) and cash flows from operations
next period are unchanged from this period and Baldwin
takes ONLY the following actions relating to cash flows
from investing and financing activities:
Issues $2,000 (000) of long-term debt
Pays $4,000 (000) in dividends
,3|Page
Retires $10,000 (000) in debt
Which of the following activities will expose Baldwin to the
most risk of needing an emergency loan? - Answer-
Purchases assets at a cost of $15,000 (000)
According to information found on the production analysis
page of the Inquirer, Chester sold 1126 units of Cat in the
current year. Assuming that Cat maintains a constant
market share, all the units of Cat are sold in the Nano
market segment and the growth rate remains constant,
how many years will it be before Cat will not be able to
meet future demand unless the company adds production
capacity? Exclude any existing inventory. - Answer-1 year
Which description best fits Andrews? For clarity:
- A differentiator competes through good designs, high
awareness, and easy accessibility.
, 4|Page
- A cost leader competes on price by reducing costs and
passing the savings to customers.
- A broad player competes in all parts of the market.
- *A niche player competes in selected parts of the
market.* - Answer-Andrews is a niche differentiator
How do you increase your stock price? (3) - Answer-1.
Increase EPS
2. Retire stock
3. Issue a dividend
How do you find EPS? - Answer-Net Profit / # shares
outstanding
What is the prime rate? - Answer-The interest rate
commercial banks charge their most credit worthy
customers.
How do you find the number of months of inventory you
have left? (3)
