Description
You can see the effect of the matching principle on your Capsim Core Income Statement. When you sell products, the amount you paid for the materials and labor will show up in the Variable Cost section, even though your company paid those bills earlier. The lesson is that those costs are matched to the sales.
When you buy additional capacity for your Capsim plant or add points to your automation rating, your investment in these assets will show up on the Balance Sheet under Fixed Assets as a positive number. That same amount will show up on the Cash Flow statement (as a negative number) under Cash From Investing, because the cash went out of the business for the equipment.
For this assignment, explain the relationship between your team’s Capsim decisions and their impact on the Income Statement and Balance Sheet for last week’s Round 2 competition. Share your decision-making logic. Include in your discussion how your decisions affected a) sales, b) profit, and c) contribution margin, and explain the concepts and models you used to form and integrate your strategies.
Your paper should meet the following requirements:
- Be 5-6 pages in length, excluding the title and references pages.
- Be formatted according to the CSU-Global Guide to Writing & APA.
- In addition to course resources, use the CSU-Global Library to find three additional resources to support the position you take.
Be sure to check out the CSU-Global Online Research and Writing Lab. Here you can find:
- Writing considerations and tips
- Writing resources
- Sample papers
- An APA Template for writing assignments
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Explanation & Answer
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Running head: CAPSIM DECISIONS
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Using Computers to Generate Capsim Decisions
Name
Institutional Affiliation
CAPSIM DECISIONS
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Capsim Decisions
Businesses are always competing, and they must be innovative to remain in the market.
Otherwise, uncompetitive companies are forced out of the market. The performance of an
organization depends on its decision-making processes. Business decisions are of different types
including sales, pricing, marketing, research and development among others. The decisionmaking process is complicated, and the administration can use different ways to make these
decisions. Capsim forecasting is just one of them. It provides industries' report containing vital
information about a company and its competitors. In this case, decisions are interconnected to
achieve the desired result. The Capstone has several market segments that include traditional,
high-end, low-end, performance and size. Capsim decisions are computer-based hence give
almost accurate predictions (Clark & Kent, 2013).
Research and Development
Since the customers’ needs come first, the products ought to meet their expectations.
However, it is not feasible to develop a new product regarding cost. Therefore, it is cheaper to
leave the product as it is or probably make a few improvements. In this case, the company gains
competitive advantage by maintaining the commodity’s price low. On the other side, making
adjustments to the product makes people view it as new thereby increasing the cost of the
advertisement. Research and development should take the largest proportion of the
organization’s income because it takes time to find out what the customers want and incorporate
them into the decision making process. Additionally, organizations should complete their
projects within a year, so they do not miss out on sales. New developments take more than one
CAPS...