Frequently Asked Questions

Game related (MAGNUS simulation)

1. How is ROI calculated in the Account Report?
2. When is Income Tax due for payment?
3. When do loan transactions take place? When is loan interest charged?
4. When is emergency loan incurred?
5. When is sale of plant or investment in plants take place?
6. How is market share determined?
7. What do B/F(.) and C/F(.) mean in the Production Report?
8. How are game winners determined?
9. Why can't I use the money received from the sale of products for allocation?
10. In the Total Market Report, there are 2 items, Sales and Orders. What does Orders mean?
11. Regarding contract bidding, if total bidding is more than the contract offered, what is the way to prorate those allocations among successful companies?
12. What will it lead to when total orders received are more than total inventory? Supposing the demand is over the supply, will orders be distributed to other markets or as additional sales to other companies?

1. How is ROI calculated in the Account Report?
ROI = (Profit C/F * 100) / Total Assets (from Balance Sheet)

2. When is Income Tax due for payment?
Income Tax is paid from the cash in hand at the beginning of each period.

3. When do loan transactions take place? When is loan interest charged?
All loan transactions, either procurement or repayment, are deemed to take place at the beginning of each period.  Loan interest is calculated and deducted from the cash balance at the end of each period.

4. When is emergency loan incurred?<br>
Emergency loan is incurred when cash balance is not enough to cover all the necessary locations, or example, transportation. Emergency loan is also incurred when loan applied exceeds the limits set out in the Administration Notice.

5. When is sale of plant or investment in plants take place?
When plants are sold the transaction takes place at the beginning of the current period.
This means that:
The cash proceeds are available for allocations for the current decision period;
Plant capacity for production in the current period is reduced;
Plant depreciation for the current period is charged on the reduced plant capacity.

Investment in plants, however, is realized only at the beginning of the next period.

6. How is market share determined?
A company's share of the market in any area is derived from a calculation involving current prices and the level of marketing and R & D expenditure.  It should be noted that there is a cut-off point whereby a company may achieve nil sales in any area if its price is greatly in excess of the average of all companies or if the marketing expenditure is very low.

7. What do B/F(.) and C/F(.) mean in the Production Report?
B/F stands for ‘Brought Forward’ and C/F stands for ‘To be Carried Forward’.
In the Stock Analysis of the Production Report,
(X) B/F (-2) means inventory B/F from 2 periods before.  This is immediately written off.
(Y) B/F (-1) means inventory B/F from last period.  This is used to satisfy demand first.
C/F (-1) is the left-over of (Y) after satisfying the demand. This will become (X) in the report for next period.
C/F (0) is the left-over of production after satisfying the demand, + amount reprocessed + stock bought. This will become (Y) in the report for next period.

8. How are game winners determined?
The five evaluation measures are weighted and ranked.  Ranks rather than the measures themselves are used to decide on the winning companies.

9. Why can't I use the money from the sale of products for allocation?
The sales revenue is only available at the end of the period. It is part of the income that will be used to offset the expenditure and any excess is absorbed into the cash on hand available for allocation in the next period.

10.In the Total Market Report, there are 2 items, Sales and Orders. What does Orders mean?
“Orders” is the number of people who want to buy your consumer product. The factors that determine how many people want to order your product is explained in detail in the user guide.

11.Regarding contract bidding, if total bidding is more than the contract offered, what is the way to prorate those allocations among successful companies?
Winning contracts is basically based on price and your company’s contract image. In the beginning, everybody’s image is the same, so they must compete on price. The contract image is determined by how well you fulfill the contract. If you fulfill larger contracts, your image will go up. If you fail to fulfill the contract that you win, your image will go down. The image will determine how much of the next contract you will be awarded. There is no need to produce more than the amount you bid. You will only be able to sell what you have bid for.

12. What will it lead to when total orders received are more than total inventory? Supposing the demand is over the supply, will orders be distributed to other markets or as additional sales to other companies?
If you set your price low and marketing high, and produce less, then obviously you will not be able to meet demand. The orders of each area are independent, depending on the various actions of the companies in that area. Orders will not be distributed to other markets. Only if other companies have excess goods after meeting their normal sales then they will be able to sell goods as additional sales.