writing Mini-Case Study entitled “Finance”
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
20171213202008capsimcore_mini_cases_student_finance_wd(1)
Solution Preview
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 decision-making process is complicated and the administration can use different ways to make these decisions. Capsim forecasting is just one of them.
(1,477 words)