Lowering the automation level will result in a. receiving a cash payment of $4 per unit of capacity. b. a tax credit. c. a charge. d. immediate changes to production lines. e. none of the above.

Lowering the automation level will result in
a. receiving a cash payment of $4 per unit of capacity.
b. a tax credit.
c. a charge.
d. immediate changes to production lines.
e. none of the above.
by

1 Answer

Answer :

c. a charge.
by

Related questions

What is the total cost in dollars for adding 1.0 million units of capacity to a production line with an automation level of 1.0 and floor space costs per unit of $6? Assume automation costs per unit of $4. a. $26 million b. $10 million c. $2.6 million d. $1 million e. none of the above

Description : What is the total cost in dollars for adding 1.0 million units of capacity to a production line with an automation level of 1.0 and floor space costs per unit of $6? Assume automation costs per unit of $4. a. $26 million b. $10 million c. $2.6 million d. $1 million e. none of the above

Last Answer : b. $10 million

Adding one additional unit of capacity costs a. $4 x Change (difference) in Automation Level b. $6 + ($4 x Current Automation Level). c. $6 x Change (difference) in Automation Level. d. $4 + ($6 x Current Automation Level). e. none of these.

Description : Adding one additional unit of capacity costs a. $4 x Change (difference) in Automation Level b. $6 + ($4 x Current Automation Level). c. $6 x Change (difference) in Automation Level. d. $4 + ($6 x Current Automation Level). e. none of these.

Last Answer : b. $6 + ($4 x Current Automation Level).

For each point of change in automation, your company is charged ______ per unit of capacity. a. $6.00 c. $4.00 b. $5.00 d. $7.00

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Last Answer : c. $4.00

A new unit of capacity costs $6 for the floor space plus $4 times a. hourly wage. b. automation rating. c. unit cost. d. MTBF. e. $0.65.

Description : A new unit of capacity costs $6 for the floor space plus $4 times a. hourly wage. b. automation rating. c. unit cost. d. MTBF. e. $0.65.

Last Answer : b. automation rating.

The cost to increase automation to 8.0 is equal to a. First Shift Capacity X [$8 X (4 – Automation Level). b. First Shift Capacity X [$8 X (4 + Automation Level). c. First Shift Capacity X [$4 X (8 – Automation Level). d. First Shift Capacity X [$4 X (8 + Automation Level). e. First Shift Capacity X [$4 X (4 – Automation Level)

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Last Answer : c. First Shift Capacity X [$4 X (8 – Automation Level).

.If you are currently producing 100,000 units and your automation level is 10, how much will it cost you to double your capacity? a. $1,000,000 b. $4,600,000 c. $100,000 d. $10,000 e. none of the above

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Last Answer : b. $4,600,000

Which statement is true? a. Increasing in capacity and changes in automation can take less than a year to implement if the product already exists. Sales of capacity take a full year to implement. b. Increases in capacity and changes in automation take a full year to implement. Sales of capacity are immediate. c. Increases in capacity, changes in automation and sales of capacity take a full year to implement. d. Increases in capacity, changes in automation and sales of capacity take less than a year to implement if the product already exists.

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Last Answer : b. Increases in capacity and changes in automation take a full year to implement. Sales of capacity are immediate.

What is the right formula for capacity investment? a. Investment = Capacity x ($4 x Automation) b. Investment = Capacity x [$10 + ($4 x Automation)] c. Investment = Capacity x [$4 + ($6 x Automation)] d. Investment = Capacity x [$6 + ($4 x Automation)] e. Investment = Capacity x Automation

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Last Answer : d. Investment = Capacity x [$6 + ($4 x Automation)]

If you sell off a production line (capacity and automation), the amount of cash that the company will receive will be a. 65% of the original cost. b. average cost of production for the previous year (market price). c. 50% of the book value. d. 50% of the acquisition cost. e. 65% of the book value.

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Last Answer : a. 65% of the original cost.

If you increase automation from 2.0 to 5.0, the cost is: a. $12 per unit of capacity. b. $15 per unit of capacity. c. $9 per unit of capacity. d. $6 per unit of capacity. e. Cannot determine with this information.

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Last Answer : a. $12 per unit of capacity.

If a line has a capacity of 100,000 units, the cost of changing the automation level 1 unit either up or down is a. $60,000. b. $40,000. c. $400,000. d. $600,000. e. none of the above.

Description : If a line has a capacity of 100,000 units, the cost of changing the automation level 1 unit either up or down is a. $60,000. b. $40,000. c. $400,000. d. $600,000. e. none of the above.

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If all of the capacity on a production line is sold a. all remaining inventory is sold for half the average cost of production. b. a loss is written off on the income statement. c. Capstone interprets the action as a liquidation instruction. d. the company will receive a cash payment of 65% the original investment on capacity. e. all of the above.

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Last Answer : e. all of the above.

Which is false about production in Capsim? a. Teams cannot produce beyond 100% capacity. b. Teams should match their production schedule to the teams sales forecast. c. There is a one year lag between purchase and use of additional production capacity. d. There is a one year lag between purchase and use of additional production automation. e. All of the above are true.

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Last Answer : a. Teams cannot produce beyond 100% capacity.

Which three factors drive labor cost? a. Production capacity b. Wage and benefit rates c. Automation levels d. Second shift/Overtime costs e. b, c, d

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Last Answer : e. b, c, d

If you purchase production capacity and automation: a. it is available immediately. b. it is available in 6 months. c. it is available in the next year. d. it is available when you need it. e. none of the above.

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.As a manager you need to change the automation level of your segment from 2 to 5. The line has a capacity of $2 million. How much would it cost? a. $12 million b. $24 million c. $10 million d. $6 million e. none of the above

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.If your current capacity is 10,000 units and your automation level is 5.0, what is the difference of the investment between doubling your capacity and doubling your automation level? a. $60,000 b. $20,000 c. $10,000 d. $520,000 e. $260,000

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At the start of the simulation, all assembly lines have an automation level between: a. 2.0 and 4.0. b. 3.0 and 5.0. c. 4.0 and 6.0. d. 5.0 and 7.0. e. 6.0 and 8.0.

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Last Answer : b. 3.0 and 5.0.

What does not drive length of R&D project? a. The product's automation level on the Production line. b. The amount of money You are willing to spend on it. c. The number of R&D projects underway at the same time. d. The proximity of the product's new location to an existing product in your company's line. e. The labor strike.

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Last Answer : The labor strike.

As a general rule, stock issues are used to: a. Protect you from getting a loan from Big Al. b. Fund the purchase of more market share. c. Fund long term investments in capacity and automation. d. Fund yearly sales and promotional budgets. e. All of the above.

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When purchasing increased Capacity and Automation, the new capacity becomes available a. immediately. b. in 1 year. c. in 6 months. d. in 2 years. e. none of these.

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There is ______ lag in buying new Capacity and ______ lag in changing Automation. a. 0; 0 b. 1 year; 0 c. 0; 1 year d. 1 year; 1 year e. ½ year; ½ year

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Repositioning moves a product on the Perceptual Map from its old location to a new one. When does the new location become active? a. The day the R&D project completes b. The following year the R&D project completes c. The month the R&D project completes d. The day capacity and automation is purchased e. The day capacity is purchased

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Last Answer : a. The day the R&D project completes

How can the R&D cycle time be reduced? a. Increasing automation levels b. Budgeting money to quality initiatives c. Increasing R&D budget d. Decreasing product portfolio e. Decreasing capacity

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If you want to add 500,000 units of capacity to an assembly line with an automation rating of 5, how much will it cost? a. 1,200,000 b. 1,300,000 c. 13,000,000 d. 24,000,000 e. 26,000,000

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If your team decides to introduce a new product, when should capacity and automation be purchased? a. Two rounds prior to product release b. One round prior to product release c. The round of product release d. The round after product release e. Purchase of capacity and automation is not necessary for new product release

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Last Answer : b. One round prior to product release

How can assembly lines double their capacity? a. Speed up the production. b. Add a second shift. c. Double the material. d. Build more assembly lines. e. Assembly lines cannot be doubled.

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Last Answer : b. Add a second shift.

Which financial obligation is best satisfied with Bond Issues? a. Accounts Payable b. Increased production capacity c. Changes in A/R policy d. Salary increases e. All of the above

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What is one way to lower material costs? a. decrease MTBF b. increase capacity c. increase automation d. none of the above

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ncreasing a product’s reliability will result in which of the following changes to production costs? a. Lower material cost b. Higher material cost c. Higher labor costs d. Lower labor costs e. Reducing MTBF has no effect on costs of production

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What is one drawback of increasing automation? a. The product requires increased time/expense for subsequent short-move repositioning. b. Operating second shift becomes more expensive. c. Automation causes large leaps in repositioning. d. Automation slows production capability. e. It requires more employees for the production line.

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Last Answer : a. The product requires increased time/expense for subsequent short-move repositioning.

If you reduce automation in the production component of Marketing, you will: a. slow down R&D designs. b. incur a retooling cost. c. lose the game. d. none of the above.

Description : If you reduce automation in the production component of Marketing, you will: a. slow down R&D designs. b. incur a retooling cost. c. lose the game. d. none of the above.

Last Answer : b. incur a retooling cost.

Higher automation leads to lower production costs and has what effect on repositioning a product on the perceptual map? a. makes it more difficult and expensive b. makes it easier and cheaper c. no effect d. eliminates repositioning

Description : Higher automation leads to lower production costs and has what effect on repositioning a product on the perceptual map? a. makes it more difficult and expensive b. makes it easier and cheaper c. no effect d. eliminates repositioning

Last Answer : a. makes it more difficult and expensive

When going to a new automation level a. there is a 1 year lag. b. there is a lag dependent on the amount the automation level has been changed. c. there is no lag. d. the lag is dependent on the cost. e. none of the above.

Description : When going to a new automation level a. there is a 1 year lag. b. there is a lag dependent on the amount the automation level has been changed. c. there is no lag. d. the lag is dependent on the cost. e. none of the above.

Last Answer : a. there is a 1 year lag.

The automation level a. causes you to require more manpower with higher ratings. b. causes you to require more manpower with lower ratings. c. causes you to require less manpower with higher ratings. d. causes you to require less manpower with lower ratings. e. both b and c.

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Last Answer : e. both b and c.

In the Capstone® simulation, what are the components of a product’s material cost? a. Cost of Inventory on hand and the cost to store it b. Reliability component cost and positioning component cost c. The costs associated with inventory, shipping and handling d. Level of automation and product reliability e. None of the above

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Last Answer : b. Reliability component cost and positioning component cost

.If you are currently producing 100,000 units at an automation level of 5, how much would it cost to maximize automation? a. $500,000 b. $50,000 c. $2,000,000 d. $5,000,000 e. none of the above

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Last Answer : c. $2,000,000

In order to achieve 100% accessibility, a team must: a. none of these. b. have at least two products in the same segment. c. have a combined sales budget of $4.0 million. d. create awareness in the previous year. e. spend $4 million on distribution channels.

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Last Answer : b. have at least two products in the same segment.

If the price/product is $10 and the material cost/product is $2 and the labor cost/product is $3, what is the gross margin/product? a. $6 b. $2 c. $4 d. $3 e. none of the above

Description : If the price/product is $10 and the material cost/product is $2 and the labor cost/product is $3, what is the gross margin/product? a. $6 b. $2 c. $4 d. $3 e. none of the above

Last Answer : e. none of the above

Automation levels are given on a scale of _____ to _____. a. 0.0; 5.0 b. 1.0; 5.0 c. 0.0; 10.0 d. 1.0; 10.0 e. 5.0; 10.0

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Last Answer : d. 1.0; 10.0

Labor costs are driven by three factors: a. wage and benefit rates, automation levels, and MTBF. b. wage and benefit rates, positioning, and second shift. c. wage and benefit rates, second shift, and MTBF. d. wage and benefit rates, automation levels, and second shift. e. wage and benefit rates, second shift, and material costs.

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If a product’s Automation rating is substantially increased, it will: a. take longer to move the product across the Perceptual Map. b. take a shorter time to move the product across the Perceptual Map. c. not allow the product to move across the Perceptual Map. d. have no effect on the product moving across the Perceptual Map. e. other.

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Last Answer : a. take longer to move the product across the Perceptual Map.

Which Automation rating requires the longest time to reposition a product? a. 1 b. 3 c. 7 d. 9 e. 10

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Last Answer : e. 10

R&D completion time depends on a. number of projects in R&D. b. automation rating. c. similarity to existing products. d. size of the product. e. a, b, and c.

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The relative cost of a product’s material cost increases as: a. size is increased. b. performance is decreased. c. MTBF is raised. d. automation stays the same. e. all of the above.

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Last Answer : c. MTBF is raised.

Which of the following are not considered in the Fine Cut? a. Positioning b. Automation c. Age d. Reliability e. Price

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What happens to a company when it increases the A/P lag? a. It improves its cash position. b. It deteriorates its cash position. c. It loses credibility. d. Its suppliers withhold material for production. e. a, d.

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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 b. Profits, Current Debt, Withholding Pensions, and Stock Issues c. Liquidating Inventory, Stock Issues, Bond Issues and Profits d. Credit Lines, Bond Issues, Stock Issues, and Profits e. Current Debt, Stock Issues, Bond Issues, and cooking the books

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What is the most important element that ensures the accuracy of the Proformas reports? a. Production capacity b. Marketing sales forecasts c. R & D decisions d. Financial decisions e. All of the above

Description : What is the most important element that ensures the accuracy of the Proformas reports? a. Production capacity b. Marketing sales forecasts c. R & D decisions d. Financial decisions e. All of the above

Last Answer : b. Marketing sales forecasts

A production line with 1000 units of capacity has a max production capability of: a. 1000. b. 1500. c. 2500. d. 2000. e. as many as needed.

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Last Answer : d. 2000.