Spring04 Solution
NEW YORK UNIVERSITY Leonard N. Stern School of Business
Final Exam Version C
C10.0002 Principles of Managerial Accounting
Spring 2004 Answer all questions of this examination in the exam booklet provided.
Points Distribution:
Part A
Multiple Choice 54 points Part B Question 1 20 Question 2 20 Question 3 6 46 Total 100 points
Part A - Multiple Choice
1
Conversion cost consists of which of the following?
a. Manufacturing overhead cost.
b. Direct materials and direct labor cost.
c. Direct labor cost.
d. Direct labor and manufacturing overhead cost.
2.
Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?
a. Product cost
b. Manufacturing overhead
c. Period cost
d. Administrative cost
3.
The salary of the president of a manufacturing company would be classified as which of the following?
a. Product cost
b. Period cost
c. Manufacturing overhead
d. Direct labor
4
Which one of the following costs should NOT be considered a direct cost of serving a particular customer who orders a customized personal computer by phone directly from the manufacturer?
a. the cost of the hard disk drive installed in the computer.
b. the cost of shipping the computer to the customer.
c. the cost of leasing a machine on a monthly basis that automatically tests hard disk drives before they are installed in computers.
d. the cost of packaging the computer for shipment.
5
Which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet?
a. the cost of the hamburger patty in the burger they ordered.
b. the wages of the employee who takes the customer's order.
c. the cost of heating and lighting the kitchen.
d. the salary of the outlet's manager.
6
Micro Computer Company has set up a toll-free telephone line for customer
Final Exam Version C
C10.0002 Principles of Managerial Accounting
Spring 2004 Answer all questions of this examination in the exam booklet provided.
Points Distribution:
Part A
Multiple Choice 54 points Part B Question 1 20 Question 2 20 Question 3 6 46 Total 100 points
Part A - Multiple Choice
1
Conversion cost consists of which of the following?
a. Manufacturing overhead cost.
b. Direct materials and direct labor cost.
c. Direct labor cost.
d. Direct labor and manufacturing overhead cost.
2.
Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?
a. Product cost
b. Manufacturing overhead
c. Period cost
d. Administrative cost
3.
The salary of the president of a manufacturing company would be classified as which of the following?
a. Product cost
b. Period cost
c. Manufacturing overhead
d. Direct labor
4
Which one of the following costs should NOT be considered a direct cost of serving a particular customer who orders a customized personal computer by phone directly from the manufacturer?
a. the cost of the hard disk drive installed in the computer.
b. the cost of shipping the computer to the customer.
c. the cost of leasing a machine on a monthly basis that automatically tests hard disk drives before they are installed in computers.
d. the cost of packaging the computer for shipment.
5
Which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet?
a. the cost of the hamburger patty in the burger they ordered.
b. the wages of the employee who takes the customer's order.
c. the cost of heating and lighting the kitchen.
d. the salary of the outlet's manager.
6
Micro Computer Company has set up a toll-free telephone line for customer