Classify its a direct or indirect costs? Cost to lease (rent) railroad carsCost of track and bed (ballast) replacementDiesel fuel costsCost to lease (rent) train locomotivesDepreciation of terminal facilitiesMaintenance costs of right-of-way, bridges, and buildingsSalaries of dispatching and communications personnelHeadquarters information technology support staff salariesSafety training costsWages of train engineersWages of switch and classification yard personnelCosts of accident cleanup

Direct cost: A cost implies the payment of cash or the commitment to pay cash in the future for the…

Cost to lease (rent) railroad cars Cost of track and bed (ballast) replacement Diesel fuel costs Cost to lease (rent) train locomotives Depreciation of terminal facilities Maintenance costs of right-of-way, bridges, and bui Salaries of dispatching and communications persor Headquarters information technology support staffi

Cost to lease (rent) railroad cars Cost of track and bed (ballast) replacement Diesel fuel costs Cost to lease (rent) train locomotives Depreciation of terminal facilities Maintenance costs of right-of-way, bridges, and bui Salaries of dispatching and communications persor Headquarters information technology support staffi

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 7E: Classifying costs In a service company A partial list of the costs for Wisconsin and Minnesota...

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Classifying Costs in a Service Company A partial list of the costs for Wisconsin and Minnesota Railroad, a short hauler of freight, follows. Classify each cost as either indirect or direct. For purposes of classifying each cost, use the train as the cost object. Costs Classification a. Cost to lease (rent) railroad cars b. Cost of track and bed (ballast) replacement c. Diesel fuel costs d. Cost to lease (rent) train locomotives e. Depreciation of terminal facilities f. Maintenance costs of right-of-way, bridges, and buildings g. Salaries of dispatching and communications personnel h. Headquarters information technology support staff salaries i. Safety training costs j. Wages of train engineers k. Wages of switch and classification yard personnel l. Costs of accident cleanup
A partial list of the costs for Wisconsin and Minnesota Railroad, a short hauler of freight, follows. Classify each cost as either indirect or direct. For purposes of classifying each cost, use the train as the cost object.a. Cost to lease (rent) railroad carsb. Cost of track and bed (ballast) replacementc. Diesel fuel costsd. Cost to lease (rent) train locomotivese. Depreciation of terminal facilitiesf. Maintenance costs of right-of-way, bridges, and buildingsg. Salaries of dispatching and communications personnelh. Headquarters information technology support staff salariesi. Safety training costsj. Wages of train engineersk. Wages of switch and classification yard personnell. Costs of accident cleanup
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1. State whether each of the below is Capital Expenditure or Revenue Expenditure.a. Purchase of new delivery vehicleb. Payment of an invoice for advertisingc. Costs of clearing the site ready for an extension to the factory buildingd. Signwriting on the outside of the new delivery vehiclese. Redecoration of the officef. Payment of delivery driver’s wagesg. Fuel for delivery vehiclesh. Fitting of shelving in delivery vehicle
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